Mavesa (A): Business Strategy Amid Economic and Political Turmoil SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Mavesa (A): Business Strategy Amid Economic and Political Turmoil
Examines Mavesa's response to external liberalization in 1989. The consumer packaged goods firm, which had been extensively vertically integrated, completely revamps its business strategy in the 1990s.
Swot Analysis of "Mavesa (A): Business Strategy Amid Economic and Political Turmoil" written by Robert E. Kennedy, Brian P. Irwin includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Revamps Mavesa facing as an external strategic factors. Some of the topics covered in Mavesa (A): Business Strategy Amid Economic and Political Turmoil case study are - Strategic Management Strategies, Emerging markets, Globalization, Managing uncertainty, Policy, Risk management and Global Business.
Some of the macro environment factors that can be used to understand the Mavesa (A): Business Strategy Amid Economic and Political Turmoil casestudy better are - – increasing commodity prices, increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models,
digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, etc
Introduction to SWOT Analysis of Mavesa (A): Business Strategy Amid Economic and Political Turmoil
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mavesa (A): Business Strategy Amid Economic and Political Turmoil case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Revamps Mavesa, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Revamps Mavesa 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 Mavesa (A): Business Strategy Amid Economic and Political Turmoil can be done for the following purposes –
1. Strategic planning using facts provided in Mavesa (A): Business Strategy Amid Economic and Political Turmoil case study
2. Improving business portfolio management of Revamps Mavesa
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 Revamps Mavesa
Strengths Mavesa (A): Business Strategy Amid Economic and Political Turmoil | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Revamps Mavesa in Mavesa (A): Business Strategy Amid Economic and Political Turmoil Harvard Business Review case study are -
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Revamps Mavesa digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Revamps Mavesa 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.
High switching costs
– The high switching costs that Revamps Mavesa 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.
Analytics focus
– Revamps Mavesa 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 Robert E. Kennedy, Brian P. Irwin 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.
Cross disciplinary teams
– Horizontal connected teams at the Revamps Mavesa 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.
Ability to lead change in Global Business field
– Revamps Mavesa 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 Revamps Mavesa in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Revamps Mavesa has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Revamps Mavesa 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.
Diverse revenue streams
– Revamps Mavesa is present in almost all the verticals within the industry. This has provided firm in Mavesa (A): Business Strategy Amid Economic and Political Turmoil 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.
Highly skilled collaborators
– Revamps Mavesa 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 Mavesa (A): Business Strategy Amid Economic and Political Turmoil HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Revamps Mavesa has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Mavesa (A): Business Strategy Amid Economic and Political Turmoil 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)
– Revamps Mavesa 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 Mavesa (A): Business Strategy Amid Economic and Political Turmoil - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Revamps Mavesa is one of the most innovative firm in sector. Manager in Mavesa (A): Business Strategy Amid Economic and Political Turmoil Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Revamps Mavesa has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Revamps Mavesa to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Mavesa (A): Business Strategy Amid Economic and Political Turmoil | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mavesa (A): Business Strategy Amid Economic and Political Turmoil are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Mavesa (A): Business Strategy Amid Economic and Political Turmoil, it seems that the employees of Revamps Mavesa don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Revamps Mavesa is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Mavesa (A): Business Strategy Amid Economic and Political Turmoil can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Revamps Mavesa 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. Revamps Mavesa 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 Mavesa (A): Business Strategy Amid Economic and Political Turmoil 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 Revamps Mavesa 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Revamps Mavesa 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.
Slow to strategic competitive environment developments
– As Mavesa (A): Business Strategy Amid Economic and Political Turmoil HBR case study mentions - Revamps Mavesa 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.
No frontier risks strategy
– After analyzing the HBR case study Mavesa (A): Business Strategy Amid Economic and Political Turmoil, 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Mavesa (A): Business Strategy Amid Economic and Political Turmoil, is just above the industry average. Revamps Mavesa 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Robert E. Kennedy, Brian P. Irwin suggests that, Revamps Mavesa 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.
High cash cycle compare to competitors
Revamps Mavesa 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.
Increasing silos among functional specialists
– The organizational structure of Revamps Mavesa is dominated by functional specialists. It is not different from other players in the Global Business segment. Revamps Mavesa needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Revamps Mavesa to focus more on services rather than just following the product oriented approach.
Opportunities Mavesa (A): Business Strategy Amid Economic and Political Turmoil | 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 Mavesa (A): Business Strategy Amid Economic and Political Turmoil are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Revamps Mavesa 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.
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. Revamps Mavesa can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Revamps Mavesa in the consumer business. Now Revamps Mavesa can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Revamps Mavesa can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Mavesa (A): Business Strategy Amid Economic and Political Turmoil suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Leveraging digital technologies
– Revamps Mavesa 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, Revamps Mavesa 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, Mavesa (A): Business Strategy Amid Economic and Political Turmoil, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Revamps Mavesa 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 Global Business segment.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Revamps Mavesa 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 Revamps Mavesa to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Revamps Mavesa 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.
Manufacturing automation
– Revamps Mavesa 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.
Creating value in data economy
– The success of analytics program of Revamps Mavesa has opened avenues for new revenue streams for the organization in the industry. This can help Revamps Mavesa to build a more holistic ecosystem as suggested in the Mavesa (A): Business Strategy Amid Economic and Political Turmoil case study. Revamps Mavesa can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Revamps Mavesa 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Revamps Mavesa can use these opportunities to build new business models that can help the communities that Revamps Mavesa operates in. Secondly it can use opportunities from government spending in Global Business sector.
Threats Mavesa (A): Business Strategy Amid Economic and Political Turmoil External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Mavesa (A): Business Strategy Amid Economic and Political Turmoil are -
Consumer confidence and its impact on Revamps Mavesa 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.
Regulatory challenges
– Revamps Mavesa 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 Global Business 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 Revamps Mavesa business can come under increasing regulations regarding data privacy, data security, etc.
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. Revamps Mavesa 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.
Increasing wage structure of Revamps Mavesa
– 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 Revamps Mavesa.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Revamps Mavesa 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 Mavesa (A): Business Strategy Amid Economic and Political Turmoil .
Stagnating economy with rate increase
– Revamps Mavesa 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.
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. Revamps Mavesa 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.
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. Revamps Mavesa can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Revamps Mavesa has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Revamps Mavesa needs to keep up with the evolution of technology in the Global Business 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.
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 Revamps Mavesa in the Global Business sector and impact the bottomline of the organization.
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 Revamps Mavesa.
Weighted SWOT Analysis of Mavesa (A): Business Strategy Amid Economic and Political Turmoil 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 Mavesa (A): Business Strategy Amid Economic and Political Turmoil 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 Mavesa (A): Business Strategy Amid Economic and Political Turmoil 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 Mavesa (A): Business Strategy Amid Economic and Political Turmoil 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 Mavesa (A): Business Strategy Amid Economic and Political Turmoil 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 Revamps Mavesa needs to make to build a sustainable competitive advantage.