Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China
Economic growth and a rising middle class consumer base make emerging markets an attractive prospect for many international businesses. Changing patterns of retail in these countries present opportunities for business expansion that many are keen to capitalize on, but also present challenges for reaching their ambitions. This article examines the growth of the coffee shop industry in China-considering its key dynamics and drivers-in order to address questions about successful retail expansion in emerging markets. We aim to explore how changing consumer cultures have contributed to a rapidly growing industry and what strategies businesses have used to enter the market and maintain growth, as well as considerations for potential retail success in the future.
Swot Analysis of "Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China" written by Jennifer Ferreira, Carlos Ferreira includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Retail Emerging facing as an external strategic factors. Some of the topics covered in Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China case study are - Strategic Management Strategies, Emerging markets and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , technology disruption, increasing commodity prices,
digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, etc
Introduction to SWOT Analysis of Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Retail Emerging, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Retail Emerging 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 Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China can be done for the following purposes –
1. Strategic planning using facts provided in Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China case study
2. Improving business portfolio management of Retail Emerging
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 Retail Emerging
Strengths Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Retail Emerging in Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China Harvard Business Review case study are -
High switching costs
– The high switching costs that Retail Emerging 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.
Ability to lead change in Strategy & Execution field
– Retail Emerging 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 Retail Emerging in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Retail Emerging 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.
Organizational Resilience of Retail Emerging
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Retail Emerging does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China 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.
Diverse revenue streams
– Retail Emerging is present in almost all the verticals within the industry. This has provided firm in Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China 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.
Training and development
– Retail Emerging has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China 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.
Effective Research and Development (R&D)
– Retail Emerging 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 Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China - 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
– Retail Emerging is one of the leading recruiters in the industry. Managers in the Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Retail Emerging has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Retail Emerging has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Strong track record of project management
– Retail Emerging is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Retail Emerging 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 Retail Emerging is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China are -
Low market penetration in new markets
– Outside its home market of Retail Emerging, firm in the HBR case study Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
No frontier risks strategy
– After analyzing the HBR case study Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China, it seems that company is thinking about the frontier risks that can impact Strategy & Execution 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.
Products dominated business model
– Even though Retail Emerging 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 - Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Retail Emerging is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Retail Emerging needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Retail Emerging to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Jennifer Ferreira, Carlos Ferreira suggests that, Retail Emerging is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Retail Emerging is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Capital Spending Reduction
– Even during the low interest decade, Retail Emerging 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.
Skills based hiring
– The stress on hiring functional specialists at Retail Emerging has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Aligning sales with marketing
– It come across in the case study Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China 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 Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China can leverage the sales team experience to cultivate customer relationships as Retail Emerging is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Retail Emerging 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. Retail Emerging 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 operating costs
– Compare to the competitors, firm in the HBR case study Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China 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 Retail Emerging 's lucrative customers.
Opportunities Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China | 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 Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China 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 Retail Emerging in the consumer business. Now Retail Emerging can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Retail Emerging 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.
Using analytics as competitive advantage
– Retail Emerging 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 Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Retail Emerging 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 Retail Emerging to increase its market reach. Retail Emerging 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.
Creating value in data economy
– The success of analytics program of Retail Emerging has opened avenues for new revenue streams for the organization in the industry. This can help Retail Emerging to build a more holistic ecosystem as suggested in the Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China case study. Retail Emerging can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Retail Emerging 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Retail Emerging 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 Retail Emerging to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Retail Emerging in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Loyalty marketing
– Retail Emerging 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Retail Emerging 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Retail Emerging can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Retail Emerging is facing challenges because of the dominance of functional experts in the organization. Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China 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.
Buying journey improvements
– Retail Emerging can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China 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.
Threats Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China are -
Stagnating economy with rate increase
– Retail Emerging 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.
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 Retail Emerging business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Retail Emerging can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China, Retail Emerging 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 .
Environmental challenges
– Retail Emerging 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. Retail Emerging can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Retail Emerging needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Regulatory challenges
– Retail Emerging 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.
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.
Consumer confidence and its impact on Retail Emerging 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.
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 Retail Emerging in the Strategy & Execution sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Retail Emerging is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Retail Emerging has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Retail Emerging 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Retail Emerging 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.
Weighted SWOT Analysis of Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China 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 Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China 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 Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China 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 Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China 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 Challenges and Opportunities of New Retail Horizons in Emerging Markets: The Case of a Rising Coffee Culture in China 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 Retail Emerging needs to make to build a sustainable competitive advantage.
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