Gemini Edibles and Fats India: In Pursuit of Growth SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Gemini Edibles and Fats India: In Pursuit of Growth
In 2017, Gemini Edibles and Fats India Private Limited (GEF India), a Hyderabad-based company, was in the business of trading, manufacturing, and marketing edible oils and fats. In the eight years since it was founded, GEF India had become the top-selling edible oil company across South India with a 40 per cent market share. The company wanted to double its current revenues by 2021, which would place it in competition with national producers. Consumption of edible oil in India was increasing, and domestic production was not meeting demand. GEF India wanted to capitalize on the opportunity, but the revenue targets indicated no ordinary increase. What should its growth strategy be? Was there a need to revisit its marketing communication strategy in order to strengthen its brand amid increasing competition? From an organizational perspective, did the growth challenge require a shift in the company's culture or internal communication strategy?
Swot Analysis of "Gemini Edibles and Fats India: In Pursuit of Growth" written by Ira Acharya, Neera Jain includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Gef Fats facing as an external strategic factors. Some of the topics covered in Gemini Edibles and Fats India: In Pursuit of Growth case study are - Strategic Management Strategies, Growth strategy, Marketing, Organizational culture and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Gemini Edibles and Fats India: In Pursuit of Growth casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, increasing commodity prices, there is increasing trade war between United States & China,
wage bills are increasing, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Gemini Edibles and Fats India: In Pursuit of Growth
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Gemini Edibles and Fats India: In Pursuit of Growth case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Gef Fats, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Gef Fats 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 Gemini Edibles and Fats India: In Pursuit of Growth can be done for the following purposes –
1. Strategic planning using facts provided in Gemini Edibles and Fats India: In Pursuit of Growth case study
2. Improving business portfolio management of Gef Fats
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Gef Fats
Strengths Gemini Edibles and Fats India: In Pursuit of Growth | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Gef Fats in Gemini Edibles and Fats India: In Pursuit of Growth Harvard Business Review case study are -
Diverse revenue streams
– Gef Fats is present in almost all the verticals within the industry. This has provided firm in Gemini Edibles and Fats India: In Pursuit of Growth 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.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Gef Fats digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Gef Fats 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.
Superior customer experience
– The customer experience strategy of Gef Fats in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the Gemini Edibles and Fats India: In Pursuit of Growth 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
- Gef Fats 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 Gef Fats is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Gemini Edibles and Fats India: In Pursuit of Growth Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Gef Fats 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 Ira Acharya, Neera Jain 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.
Strong track record of project management
– Gef Fats is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Strategy & Execution industry
– Gemini Edibles and Fats India: In Pursuit of Growth firm has clearly differentiated products in the market place. This has enabled Gef Fats to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Gef Fats to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Gef Fats has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Gef Fats 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.
Highly skilled collaborators
– Gef Fats 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 Gemini Edibles and Fats India: In Pursuit of Growth HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Gef Fats 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.
Organizational Resilience of Gef Fats
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Gef Fats does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Gemini Edibles and Fats India: In Pursuit of Growth | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Gemini Edibles and Fats India: In Pursuit of Growth are -
Interest costs
– Compare to the competition, Gef Fats 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Gef Fats 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.
Increasing silos among functional specialists
– The organizational structure of Gef Fats is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Gef Fats needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Gef Fats 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 Gemini Edibles and Fats India: In Pursuit of Growth, is just above the industry average. Gef Fats 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Gef Fats is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Gemini Edibles and Fats India: In Pursuit of Growth can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High cash cycle compare to competitors
Gef Fats 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Gemini Edibles and Fats India: In Pursuit of Growth, it seems that the employees of Gef Fats 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 Gemini Edibles and Fats India: In Pursuit of Growth 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 Gemini Edibles and Fats India: In Pursuit of Growth can leverage the sales team experience to cultivate customer relationships as Gef Fats is planning to shift buying processes online.
Products dominated business model
– Even though Gef Fats 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 - Gemini Edibles and Fats India: In Pursuit of Growth should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Gef Fats 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. Gef Fats even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High bargaining power of channel partners
– Because of the regulatory requirements, Ira Acharya, Neera Jain suggests that, Gef Fats 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.
Opportunities Gemini Edibles and Fats India: In Pursuit of Growth | 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 Gemini Edibles and Fats India: In Pursuit of Growth are -
Using analytics as competitive advantage
– Gef Fats 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 Gemini Edibles and Fats India: In Pursuit of Growth - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Gef Fats to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Gef Fats to increase its market reach. Gef Fats 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.
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 Gef Fats in the consumer business. Now Gef Fats can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Gef Fats 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Gef Fats 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, Gemini Edibles and Fats India: In Pursuit of Growth, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Gef Fats can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Gef Fats can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Gemini Edibles and Fats India: In Pursuit of Growth 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.
Creating value in data economy
– The success of analytics program of Gef Fats has opened avenues for new revenue streams for the organization in the industry. This can help Gef Fats to build a more holistic ecosystem as suggested in the Gemini Edibles and Fats India: In Pursuit of Growth case study. Gef Fats can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Gef Fats can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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.
Learning at scale
– Online learning technologies has now opened space for Gef Fats 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.
Building a culture of innovation
– managers at Gef Fats can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Gef Fats 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. Gef Fats 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Gef Fats can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Threats Gemini Edibles and Fats India: In Pursuit of Growth External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Gemini Edibles and Fats India: In Pursuit of Growth are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Gef Fats in the Strategy & Execution industry. The Strategy & Execution 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.
High dependence on third party suppliers
– Gef Fats 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.
Consumer confidence and its impact on Gef Fats 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 wage structure of Gef Fats
– 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 Gef Fats.
Technology acceleration in Forth Industrial Revolution
– Gef Fats has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Gef Fats needs to keep up with the evolution of technology in the Strategy & Execution 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Gef Fats with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
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 Gef Fats in the Strategy & Execution sector and impact the bottomline of the organization.
Regulatory challenges
– Gef Fats 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 Strategy & Execution industry regulations.
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 Gef Fats business can come under increasing regulations regarding data privacy, data security, etc.
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 Gef Fats.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Gef Fats 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 Gemini Edibles and Fats India: In Pursuit of Growth .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Gemini Edibles and Fats India: In Pursuit of Growth, Gef Fats may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Weighted SWOT Analysis of Gemini Edibles and Fats India: In Pursuit of Growth 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 Gemini Edibles and Fats India: In Pursuit of Growth 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 Gemini Edibles and Fats India: In Pursuit of Growth 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 Gemini Edibles and Fats India: In Pursuit of Growth 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 Gemini Edibles and Fats India: In Pursuit of Growth 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 Gef Fats needs to make to build a sustainable competitive advantage.
