Canopy Growth Corporation: Canada First and the World Next SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Canopy Growth Corporation: Canada First and the World Next
In 2017, the Canadian cannabis industry was getting ready for the country's anticipated legalization of recreational cannabis. The chief executive officer of Canopy Growth Corporation needed to make decisions about international expansion in the midst of the company's aggressive expansion activities, which were already underway in Canada. Other Canadian licensed producers were also engaging in international activities in Germany, Chile, Australia, and other countries where cannabis was recently legalized, either for medical or recreational use. Was it time for Canopy Growth Corporation to focus on the Canadian market, or were the international opportunities too good to miss? Opal Leung and Mark MacIsaac are affiliated with St. Francis Xavier University.
Swot Analysis of "Canopy Growth Corporation: Canada First and the World Next" written by Opal Leung, Mark MacIsaac includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Canopy Cannabis facing as an external strategic factors. Some of the topics covered in Canopy Growth Corporation: Canada First and the World Next case study are - Strategic Management Strategies, Strategy and Global Business.
Some of the macro environment factors that can be used to understand the Canopy Growth Corporation: Canada First and the World Next casestudy better are - – there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, increasing commodity prices,
increasing energy prices, wage bills are increasing, etc
Introduction to SWOT Analysis of Canopy Growth Corporation: Canada First and the World Next
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Canopy Growth Corporation: Canada First and the World Next case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Canopy Cannabis, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Canopy Cannabis 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 Canopy Growth Corporation: Canada First and the World Next can be done for the following purposes –
1. Strategic planning using facts provided in Canopy Growth Corporation: Canada First and the World Next case study
2. Improving business portfolio management of Canopy Cannabis
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 Canopy Cannabis
Strengths Canopy Growth Corporation: Canada First and the World Next | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Canopy Cannabis in Canopy Growth Corporation: Canada First and the World Next Harvard Business Review case study are -
Effective Research and Development (R&D)
– Canopy Cannabis 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 Canopy Growth Corporation: Canada First and the World Next - 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 Canopy Cannabis in the sector have low bargaining power. Canopy Growth Corporation: Canada First and the World Next has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Canopy Cannabis to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Canopy Cannabis 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 Opal Leung, Mark MacIsaac 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.
Diverse revenue streams
– Canopy Cannabis is present in almost all the verticals within the industry. This has provided firm in Canopy Growth Corporation: Canada First and the World Next 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 Global Business segment
- digital transformation varies from industry to industry. For Canopy Cannabis digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Canopy Cannabis 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.
Training and development
– Canopy Cannabis has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Canopy Growth Corporation: Canada First and the World Next 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.
Successful track record of launching new products
– Canopy Cannabis has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Canopy Cannabis 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.
Cross disciplinary teams
– Horizontal connected teams at the Canopy Cannabis 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.
Sustainable margins compare to other players in Global Business industry
– Canopy Growth Corporation: Canada First and the World Next firm has clearly differentiated products in the market place. This has enabled Canopy Cannabis to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Canopy Cannabis to invest into research and development (R&D) and innovation.
Ability to lead change in Global Business field
– Canopy Cannabis 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 Canopy Cannabis in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Canopy Cannabis in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Canopy Cannabis 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 Canopy Cannabis is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Canopy Growth Corporation: Canada First and the World Next Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Canopy Growth Corporation: Canada First and the World Next | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Canopy Growth Corporation: Canada First and the World Next are -
Slow decision making process
– As mentioned earlier in the report, Canopy Cannabis 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. Canopy Cannabis 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Canopy Growth Corporation: Canada First and the World Next 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 Canopy Cannabis has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Canopy Cannabis, firm in the HBR case study Canopy Growth Corporation: Canada First and the World Next needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Workers concerns about automation
– As automation is fast increasing in the segment, Canopy Cannabis 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.
Capital Spending Reduction
– Even during the low interest decade, Canopy Cannabis 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.
Aligning sales with marketing
– It come across in the case study Canopy Growth Corporation: Canada First and the World Next 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 Canopy Growth Corporation: Canada First and the World Next can leverage the sales team experience to cultivate customer relationships as Canopy Cannabis is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Canopy Cannabis is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Canopy Growth Corporation: Canada First and the World Next can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
No frontier risks strategy
– After analyzing the HBR case study Canopy Growth Corporation: Canada First and the World Next, 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Canopy Growth Corporation: Canada First and the World Next 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 Canopy Cannabis 's lucrative customers.
Lack of clear differentiation of Canopy Cannabis products
– To increase the profitability and margins on the products, Canopy Cannabis needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As Canopy Growth Corporation: Canada First and the World Next HBR case study mentions - Canopy Cannabis 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.
Opportunities Canopy Growth Corporation: Canada First and the World Next | 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 Canopy Growth Corporation: Canada First and the World Next are -
Manufacturing automation
– Canopy Cannabis can use the latest technology developments to improve its manufacturing and designing process in Global Business 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.
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 Canopy Cannabis in the consumer business. Now Canopy Cannabis can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Canopy Cannabis 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.
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 Canopy Cannabis 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.
Creating value in data economy
– The success of analytics program of Canopy Cannabis has opened avenues for new revenue streams for the organization in the industry. This can help Canopy Cannabis to build a more holistic ecosystem as suggested in the Canopy Growth Corporation: Canada First and the World Next case study. Canopy Cannabis can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Canopy Cannabis to increase its market reach. Canopy Cannabis 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.
Buying journey improvements
– Canopy Cannabis can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Canopy Growth Corporation: Canada First and the World Next 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Canopy Cannabis 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Canopy Cannabis is facing challenges because of the dominance of functional experts in the organization. Canopy Growth Corporation: Canada First and the World Next 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.
Developing new processes and practices
– Canopy Cannabis 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Canopy Cannabis can use these opportunities to build new business models that can help the communities that Canopy Cannabis operates in. Secondly it can use opportunities from government spending in Global Business sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Canopy Cannabis 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 Canopy Cannabis to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Canopy Cannabis can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Canopy Growth Corporation: Canada First and the World Next External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Canopy Growth Corporation: Canada First and the World Next are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Canopy Cannabis with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Canopy Cannabis can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Canopy Cannabis is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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 Canopy Cannabis.
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 Canopy Cannabis in the Global Business sector and impact the bottomline of the organization.
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. Canopy Cannabis needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Canopy Growth Corporation: Canada First and the World Next, Canopy Cannabis 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 .
Environmental challenges
– Canopy Cannabis 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. Canopy Cannabis can take advantage of this fund but it will also bring new competitors in the Global Business industry.
High dependence on third party suppliers
– Canopy Cannabis 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 Canopy Cannabis 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.
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. Canopy Cannabis 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.
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.
Weighted SWOT Analysis of Canopy Growth Corporation: Canada First and the World Next 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 Canopy Growth Corporation: Canada First and the World Next 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 Canopy Growth Corporation: Canada First and the World Next 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 Canopy Growth Corporation: Canada First and the World Next 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 Canopy Growth Corporation: Canada First and the World Next 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 Canopy Cannabis needs to make to build a sustainable competitive advantage.
