Kickstarting Tomato Jos in Nigeria SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Kickstarting Tomato Jos in Nigeria
In the spring of 2016, Mira Mehta (HBS'14), faced a difficult decision. Following a successful Kickstarter campaign, and winning the second place in the HBS New Venture Competition-Social Enterprise Track, she had moved to Northern Nigeria, where she founded the tomato paste company Tomato Jos. Though her brand had gained traction, however, she had, in the face of endless foreseen and unforeseen obstacles, yet to produce any actual paste. As the Nigerian government pondered new tariffs to protect local alternatives against the competition of ostensibly cheap and low-quality "killer tomato paste," Mehta considered a job offer from a major agricultural company that would secure her financially, but at the cost of her independence, and, perhaps, of her dreams.
Swot Analysis of "Kickstarting Tomato Jos in Nigeria" written by Sophus A Reinert, Risa Kavalercik includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tomato Paste facing as an external strategic factors. Some of the topics covered in Kickstarting Tomato Jos in Nigeria case study are - Strategic Management Strategies, Emerging markets, Government, Social enterprise and Global Business.
Some of the macro environment factors that can be used to understand the Kickstarting Tomato Jos in Nigeria casestudy better are - – increasing commodity prices, talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, there is backlash against globalization,
increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Kickstarting Tomato Jos in Nigeria
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Kickstarting Tomato Jos in Nigeria case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tomato Paste, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tomato Paste 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 Kickstarting Tomato Jos in Nigeria can be done for the following purposes –
1. Strategic planning using facts provided in Kickstarting Tomato Jos in Nigeria case study
2. Improving business portfolio management of Tomato Paste
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Tomato Paste
Strengths Kickstarting Tomato Jos in Nigeria | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tomato Paste in Kickstarting Tomato Jos in Nigeria Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Kickstarting Tomato Jos in Nigeria 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.
Learning organization
- Tomato Paste 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 Tomato Paste is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Kickstarting Tomato Jos in Nigeria Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Tomato Paste is present in almost all the verticals within the industry. This has provided firm in Kickstarting Tomato Jos in Nigeria 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.
Low bargaining power of suppliers
– Suppliers of Tomato Paste in the sector have low bargaining power. Kickstarting Tomato Jos in Nigeria has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Tomato Paste to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Tomato Paste is one of the most innovative firm in sector. Manager in Kickstarting Tomato Jos in Nigeria Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Global Business field
– Tomato Paste 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 Tomato Paste in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Tomato Paste digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Tomato Paste 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.
Effective Research and Development (R&D)
– Tomato Paste 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 Kickstarting Tomato Jos in Nigeria - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Tomato Paste is one of the leading recruiters in the industry. Managers in the Kickstarting Tomato Jos in Nigeria are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Tomato Paste 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.
Successful track record of launching new products
– Tomato Paste has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Tomato Paste 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.
High brand equity
– Tomato Paste has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Tomato Paste to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Kickstarting Tomato Jos in Nigeria | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Kickstarting Tomato Jos in Nigeria are -
Increasing silos among functional specialists
– The organizational structure of Tomato Paste is dominated by functional specialists. It is not different from other players in the Global Business segment. Tomato Paste needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Tomato Paste to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Kickstarting Tomato Jos in Nigeria, it seems that the employees of Tomato Paste 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.
Aligning sales with marketing
– It come across in the case study Kickstarting Tomato Jos in Nigeria 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 Kickstarting Tomato Jos in Nigeria can leverage the sales team experience to cultivate customer relationships as Tomato Paste is planning to shift buying processes online.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Kickstarting Tomato Jos in Nigeria 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 Tomato Paste has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Tomato Paste 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.
No frontier risks strategy
– After analyzing the HBR case study Kickstarting Tomato Jos in Nigeria, it seems that company is thinking about the frontier risks that can impact Global Business 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.
Lack of clear differentiation of Tomato Paste products
– To increase the profitability and margins on the products, Tomato Paste needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Tomato Paste is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Kickstarting Tomato Jos in Nigeria can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Tomato Paste 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 - Kickstarting Tomato Jos in Nigeria should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Kickstarting Tomato Jos in Nigeria, is just above the industry average. Tomato Paste 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Tomato Paste 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.
Opportunities Kickstarting Tomato Jos in Nigeria | 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 Kickstarting Tomato Jos in Nigeria are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Tomato Paste can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Tomato Paste can develop new processes and procedures in Global Business 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.
Buying journey improvements
– Tomato Paste can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Kickstarting Tomato Jos in Nigeria 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. Tomato Paste can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Tomato Paste 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Tomato Paste in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Tomato Paste can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Tomato Paste 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.
Learning at scale
– Online learning technologies has now opened space for Tomato Paste 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Tomato Paste 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. Tomato Paste 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Tomato Paste is facing challenges because of the dominance of functional experts in the organization. Kickstarting Tomato Jos in Nigeria 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Tomato Paste can use these opportunities to build new business models that can help the communities that Tomato Paste operates in. Secondly it can use opportunities from government spending in Global Business sector.
Using analytics as competitive advantage
– Tomato Paste 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 Kickstarting Tomato Jos in Nigeria - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Tomato Paste to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Kickstarting Tomato Jos in Nigeria External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Kickstarting Tomato Jos in Nigeria are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Tomato Paste in the Global Business industry. The Global Business 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Tomato Paste 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 Kickstarting Tomato Jos in Nigeria .
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Tomato Paste can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Tomato Paste 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.
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 Tomato Paste in the Global Business sector and impact the bottomline of the organization.
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.
Environmental challenges
– Tomato Paste 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. Tomato Paste can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Consumer confidence and its impact on Tomato Paste 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.
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 Tomato Paste.
Shortening product life cycle
– it is one of the major threat that Tomato Paste is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Tomato Paste
– 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 Tomato Paste.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Kickstarting Tomato Jos in Nigeria, Tomato Paste may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Tomato Paste business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Kickstarting Tomato Jos in Nigeria 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 Kickstarting Tomato Jos in Nigeria 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 Kickstarting Tomato Jos in Nigeria 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 Kickstarting Tomato Jos in Nigeria 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 Kickstarting Tomato Jos in Nigeria 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 Tomato Paste needs to make to build a sustainable competitive advantage.