Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
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Case Study Description of Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B)
In 2001 Veropoulos Spar, a 770 million Euro retailer in Greece and the Balkan region, intiated the implementation of a new Internet enabled collaborative ordering IT system with 3 suppliers: P&G, Unilever, and Elgeka. Two years later the project failed and had to stop. The CEO is now evaluating a new proposal for re-starting the initiative.
Swot Analysis of "Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B)" written by Theodoros Theos Evgeniou, Katerina Pramatari, Georgios Doukidis includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Veropoulos Spar facing as an external strategic factors. Some of the topics covered in Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) case study are - Strategic Management Strategies, IT, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) casestudy better are - – increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings,
technology disruption, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Veropoulos Spar, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Veropoulos Spar 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 Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) can be done for the following purposes –
1. Strategic planning using facts provided in Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) case study
2. Improving business portfolio management of Veropoulos Spar
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 Veropoulos Spar
Strengths Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Veropoulos Spar in Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) Harvard Business Review case study are -
Effective Research and Development (R&D)
– Veropoulos Spar 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 Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Veropoulos Spar in the sector have low bargaining power. Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Veropoulos Spar to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Technology & Operations field
– Veropoulos Spar 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 Veropoulos Spar in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Veropoulos Spar
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Veropoulos Spar does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Veropoulos Spar has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Veropoulos Spar 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Veropoulos Spar digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Veropoulos Spar 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.
Sustainable margins compare to other players in Technology & Operations industry
– Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) firm has clearly differentiated products in the market place. This has enabled Veropoulos Spar to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Veropoulos Spar to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Veropoulos Spar is one of the leading recruiters in the industry. Managers in the Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Veropoulos Spar is one of the most innovative firm in sector. Manager in Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Operational resilience
– The operational resilience strategy in the Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) 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.
Analytics focus
– Veropoulos Spar 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 Theodoros Theos Evgeniou, Katerina Pramatari, Georgios Doukidis 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.
High switching costs
– The high switching costs that Veropoulos Spar 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.
Weaknesses Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) are -
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 Veropoulos Spar supply chain. Even after few cautionary changes mentioned in the HBR case study - Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Veropoulos Spar vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Theodoros Theos Evgeniou, Katerina Pramatari, Georgios Doukidis suggests that, Veropoulos Spar 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.
Capital Spending Reduction
– Even during the low interest decade, Veropoulos Spar 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.
Need for greater diversity
– Veropoulos Spar has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High operating costs
– Compare to the competitors, firm in the HBR case study Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) 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 Veropoulos Spar 's lucrative customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B), it seems that the employees of Veropoulos Spar 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Veropoulos Spar is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Low market penetration in new markets
– Outside its home market of Veropoulos Spar, firm in the HBR case study Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) 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 Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) can leverage the sales team experience to cultivate customer relationships as Veropoulos Spar is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B), in the dynamic environment Veropoulos Spar has struggled to respond to the nimble upstart competition. Veropoulos Spar has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Veropoulos Spar 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.
Opportunities Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) | 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 Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) are -
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 Veropoulos Spar in the consumer business. Now Veropoulos Spar can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Veropoulos Spar 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.
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 Veropoulos Spar 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Veropoulos Spar 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, Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Veropoulos Spar can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) 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.
Leveraging digital technologies
– Veropoulos Spar 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.
Manufacturing automation
– Veropoulos Spar 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.
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. Veropoulos Spar 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. Veropoulos Spar 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.
Loyalty marketing
– Veropoulos Spar 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Veropoulos Spar to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Veropoulos Spar to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Veropoulos Spar has opened avenues for new revenue streams for the organization in the industry. This can help Veropoulos Spar to build a more holistic ecosystem as suggested in the Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) case study. Veropoulos Spar can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Veropoulos Spar can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Veropoulos Spar can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) are -
High dependence on third party suppliers
– Veropoulos Spar 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.
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. Veropoulos Spar can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Veropoulos Spar
– 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 Veropoulos Spar.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Veropoulos Spar 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 Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) .
Technology acceleration in Forth Industrial Revolution
– Veropoulos Spar has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Veropoulos Spar 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.
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. Veropoulos Spar will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B), Veropoulos Spar 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 .
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 Veropoulos Spar in the Technology & Operations sector and impact the bottomline of the organization.
Consumer confidence and its impact on Veropoulos Spar demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Environmental challenges
– Veropoulos Spar 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. Veropoulos Spar can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Regulatory challenges
– Veropoulos Spar 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.
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. Veropoulos Spar needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Veropoulos Spar is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) 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 Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) 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 Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) 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 Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) 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 Internet Enabled Collaborative Store Ordering: Veropoulos Spar Retailer (B) 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 Veropoulos Spar needs to make to build a sustainable competitive advantage.