QuikTrip, a large convenience store chain with over 500 stores, was known for its outstanding labor practices and fast, reliable, and friendly customer service. In November 2010, the CEO Chet Cadieux, had to decide how many new locations to open when QuikTrip entered a new market in North Carolina in 2011. Historically, QuikTrip had entered new markets slowly, opening 10 to 12 stores per year. And this slow growth worked well with its "people-first" strategy. For North Carolina, Cadieux was weighing the option of opening new stores at twice the normal pace. About half of employees in these new stores would come from saturated markets where there were few promotion opportunities. Hence, his growth would fulfill QuikTrip's purpose: "provide an opportunity for employees to grow and succeed." But Cadieux was concerned that fast growth might compromise QuikTrip's operations that depended on high performance employees.
Swot Analysis of "QuikTrip" written by Zeynep Ton includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Quiktrip Cadieux facing as an external strategic factors. Some of the topics covered in QuikTrip case study are - Strategic Management Strategies, Customer service, Growth strategy, Human resource management and Technology & Operations.
Some of the macro environment factors that can be used to understand the QuikTrip casestudy better are - – wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies,
geopolitical disruptions, talent flight as more people leaving formal jobs, etc
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in QuikTrip case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Quiktrip Cadieux, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Quiktrip Cadieux 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 QuikTrip can be done for the following purposes –
1. Strategic planning using facts provided in QuikTrip case study
2. Improving business portfolio management of Quiktrip Cadieux
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 Quiktrip Cadieux
Strengths QuikTrip | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Quiktrip Cadieux in QuikTrip Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Quiktrip Cadieux in the sector have low bargaining power. QuikTrip has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Quiktrip Cadieux to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Technology & Operations field
– Quiktrip Cadieux 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 Quiktrip Cadieux in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Quiktrip Cadieux 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 Quiktrip Cadieux is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in QuikTrip Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Quiktrip Cadieux 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 Zeynep Ton 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.
Training and development
– Quiktrip Cadieux has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in QuikTrip 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.
Organizational Resilience of Quiktrip Cadieux
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Quiktrip Cadieux does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Quiktrip Cadieux digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Quiktrip Cadieux 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.
Cross disciplinary teams
– Horizontal connected teams at the Quiktrip Cadieux 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.
High brand equity
– Quiktrip Cadieux has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Quiktrip Cadieux to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Quiktrip Cadieux is one of the leading recruiters in the industry. Managers in the QuikTrip are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Quiktrip Cadieux has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Quiktrip Cadieux 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
– Quiktrip Cadieux 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 QuikTrip | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of QuikTrip are -
No frontier risks strategy
– After analyzing the HBR case study QuikTrip, 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study QuikTrip, it seems that the employees of Quiktrip Cadieux 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 operating costs
– Compare to the competitors, firm in the HBR case study QuikTrip 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 Quiktrip Cadieux 's lucrative customers.
Aligning sales with marketing
– It come across in the case study QuikTrip 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 QuikTrip can leverage the sales team experience to cultivate customer relationships as Quiktrip Cadieux is planning to shift buying processes online.
Products dominated business model
– Even though Quiktrip Cadieux 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 - QuikTrip should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Quiktrip Cadieux 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 Quiktrip Cadieux, firm in the HBR case study QuikTrip needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners
– Because of the regulatory requirements, Zeynep Ton suggests that, Quiktrip Cadieux 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.
Slow to strategic competitive environment developments
– As QuikTrip HBR case study mentions - Quiktrip Cadieux 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.
Increasing silos among functional specialists
– The organizational structure of Quiktrip Cadieux is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Quiktrip Cadieux needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Quiktrip Cadieux to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Quiktrip Cadieux 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.
Opportunities QuikTrip | 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 QuikTrip are -
Leveraging digital technologies
– Quiktrip Cadieux 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.
Buying journey improvements
– Quiktrip Cadieux can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. QuikTrip 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, Quiktrip Cadieux 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, QuikTrip, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Quiktrip Cadieux 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Quiktrip Cadieux can use these opportunities to build new business models that can help the communities that Quiktrip Cadieux 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. Quiktrip Cadieux can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Quiktrip Cadieux 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 QuikTrip - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Quiktrip Cadieux to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Quiktrip Cadieux 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.
Loyalty marketing
– Quiktrip Cadieux has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, 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 Quiktrip Cadieux in the consumer business. Now Quiktrip Cadieux can target international markets with far fewer capital restrictions requirements than the existing system.
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 Quiktrip Cadieux 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.
Better consumer reach
– The expansion of the 5G network will help Quiktrip Cadieux to increase its market reach. Quiktrip Cadieux 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.
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. Quiktrip Cadieux can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats QuikTrip External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study QuikTrip are -
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 Quiktrip Cadieux in the Technology & Operations sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Quiktrip Cadieux 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Quiktrip Cadieux 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Quiktrip Cadieux 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 QuikTrip .
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. Quiktrip Cadieux needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Quiktrip Cadieux 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.
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. Quiktrip Cadieux can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Quiktrip Cadieux.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study QuikTrip, Quiktrip Cadieux 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 .
High dependence on third party suppliers
– Quiktrip Cadieux 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.
Shortening product life cycle
– it is one of the major threat that Quiktrip Cadieux is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Quiktrip Cadieux has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Quiktrip Cadieux 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 QuikTrip 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 QuikTrip 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 QuikTrip 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 QuikTrip 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 QuikTrip 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 Quiktrip Cadieux needs to make to build a sustainable competitive advantage.