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 - – supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies,
customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of 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 -
Highly skilled collaborators
– Goodbelly Dickerson 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 GoodBelly: Using Statistics to Justify the Marketing Expense HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Goodbelly Dickerson is present in almost all the verticals within the industry. This has provided firm in GoodBelly: Using Statistics to Justify the Marketing Expense 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.
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.
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.
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.
High brand equity
– Goodbelly Dickerson has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Goodbelly Dickerson to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
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.
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.
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.
High switching costs
– The high switching costs that Goodbelly Dickerson 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.
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.
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 -
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.
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.
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.
Capital Spending Reduction
– Even during the low interest decade, Goodbelly Dickerson 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.
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.
Need for greater diversity
– Goodbelly Dickerson 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.
Increasing silos among functional specialists
– The organizational structure of Goodbelly Dickerson is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Goodbelly Dickerson needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Goodbelly Dickerson to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study GoodBelly: Using Statistics to Justify the Marketing Expense, is just above the industry average. Goodbelly Dickerson needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High cash cycle compare to competitors
Goodbelly Dickerson 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.
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 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.
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 -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Goodbelly Dickerson can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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.
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.
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.
Better consumer reach
– The expansion of the 5G network will help Goodbelly Dickerson to increase its market reach. Goodbelly Dickerson 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.
Leveraging digital technologies
– Goodbelly Dickerson 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.
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.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Goodbelly Dickerson is facing challenges because of the dominance of functional experts in the organization. GoodBelly: Using Statistics to Justify the Marketing Expense 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Goodbelly Dickerson 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. Goodbelly Dickerson 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.
Buying journey improvements
– Goodbelly Dickerson can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. GoodBelly: Using Statistics to Justify the Marketing Expense 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.
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.
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.
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 -
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.
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.
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.
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 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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study GoodBelly: Using Statistics to Justify the Marketing Expense, Goodbelly Dickerson may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
Consumer confidence and its impact on Goodbelly Dickerson 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, 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 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. Goodbelly Dickerson needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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 Goodbelly Dickerson in the Technology & Operations sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Goodbelly Dickerson 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.
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.
