Yogurt Mamas: Probiotics in Tanzania SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Yogurt Mamas: Probiotics in Tanzania
The case illustrates a grassroots enterprise path to self-sufficiency in a subsistence market context. It explores the gradual evolution of a business model with strong pro-social mandates (pro-health, pro-women) and asks which growth options may best marry profitability and positive social change. The Mwanza-based Yogurt Mamas emerge as entrepreneurial role models in their communities; with funds from Western donors, and an exciting new technology, they seem set on their way to success. Yet close-up analyses reveal several outstanding concerns, including funding sufficiency, clarity of roles and responsibilities, patent restrictions, kitchen ownership, food safety and quality concerns and liability concerns among others. Despite positive health impact assessments, the venture is struggling to grow - and growth is the key to its future. Focused on a mix non-profit and retail model, the Yogurt Mamas produce and locally distribute a probiotic yogurt to their small community; they are interconnected in a local value chain, and benefit from annual inflows of disciplinary expertise from western partners, including free access to patented technology and free culturing of probiotic bacteria in a local lab. However, as the project funding winds down, business issues come to the fore. The case asks students to critically analyze the hurdles to profitability and suggest working solutions to scaling up the venture. Options include technology/model licensing and franchising, organic growth and expansion along value chain links to gain higher margins and greater control over the milk supply and to extend their distribution reach to neighboring communities. If the Yogurt Mamas cannot find an attractive and feasible growth option, the partners will have to contemplate venture termination once the grant funding comes to an end, or consider alternative exit options, including partnerships or adjacent business models.
Authors :: Oana Branzei, David J. Sharp, Jessica Kelly, Osama Siddiqui
Swot Analysis of "Yogurt Mamas: Probiotics in Tanzania" written by Oana Branzei, David J. Sharp, Jessica Kelly, Osama Siddiqui includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Yogurt Mamas facing as an external strategic factors. Some of the topics covered in Yogurt Mamas: Probiotics in Tanzania case study are - Strategic Management Strategies, Entrepreneurial management, Growth strategy and Global Business.
Some of the macro environment factors that can be used to understand the Yogurt Mamas: Probiotics in Tanzania casestudy better are - – wage bills are increasing, there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy,
competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Yogurt Mamas: Probiotics in Tanzania
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Yogurt Mamas: Probiotics in Tanzania case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Yogurt Mamas, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Yogurt Mamas 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 Yogurt Mamas: Probiotics in Tanzania can be done for the following purposes –
1. Strategic planning using facts provided in Yogurt Mamas: Probiotics in Tanzania case study
2. Improving business portfolio management of Yogurt Mamas
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 Yogurt Mamas
Strengths Yogurt Mamas: Probiotics in Tanzania | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Yogurt Mamas in Yogurt Mamas: Probiotics in Tanzania Harvard Business Review case study are -
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Yogurt Mamas digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Yogurt Mamas 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.
Diverse revenue streams
– Yogurt Mamas is present in almost all the verticals within the industry. This has provided firm in Yogurt Mamas: Probiotics in Tanzania 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.
Strong track record of project management
– Yogurt Mamas 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
- Yogurt Mamas 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 Yogurt Mamas is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Yogurt Mamas: Probiotics in Tanzania Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Yogurt Mamas is one of the leading recruiters in the industry. Managers in the Yogurt Mamas: Probiotics in Tanzania are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Yogurt Mamas 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 Oana Branzei, David J. Sharp, Jessica Kelly, Osama Siddiqui 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.
Sustainable margins compare to other players in Global Business industry
– Yogurt Mamas: Probiotics in Tanzania firm has clearly differentiated products in the market place. This has enabled Yogurt Mamas to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Yogurt Mamas to invest into research and development (R&D) and innovation.
Organizational Resilience of Yogurt Mamas
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Yogurt Mamas 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 Yogurt Mamas: Probiotics in Tanzania 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.
Ability to lead change in Global Business field
– Yogurt Mamas 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 Yogurt Mamas 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 Yogurt Mamas 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.
Superior customer experience
– The customer experience strategy of Yogurt Mamas in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Yogurt Mamas: Probiotics in Tanzania | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Yogurt Mamas: Probiotics in Tanzania are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Yogurt Mamas: Probiotics in Tanzania, is just above the industry average. Yogurt Mamas 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 cash cycle compare to competitors
Yogurt Mamas 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Yogurt Mamas: Probiotics in Tanzania 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 Yogurt Mamas has relatively successful track record of launching new products.
Slow to strategic competitive environment developments
– As Yogurt Mamas: Probiotics in Tanzania HBR case study mentions - Yogurt Mamas 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.
Interest costs
– Compare to the competition, Yogurt Mamas 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.
No frontier risks strategy
– After analyzing the HBR case study Yogurt Mamas: Probiotics in Tanzania, 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.
Low market penetration in new markets
– Outside its home market of Yogurt Mamas, firm in the HBR case study Yogurt Mamas: Probiotics in Tanzania needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study Yogurt Mamas: Probiotics in Tanzania 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 Yogurt Mamas: Probiotics in Tanzania can leverage the sales team experience to cultivate customer relationships as Yogurt Mamas is planning to shift buying processes online.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Yogurt Mamas supply chain. Even after few cautionary changes mentioned in the HBR case study - Yogurt Mamas: Probiotics in Tanzania, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Yogurt Mamas vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Yogurt Mamas 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.
Capital Spending Reduction
– Even during the low interest decade, Yogurt Mamas 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.
Opportunities Yogurt Mamas: Probiotics in Tanzania | 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 Yogurt Mamas: Probiotics in Tanzania 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 Yogurt Mamas in the consumer business. Now Yogurt Mamas can target international markets with far fewer capital restrictions requirements than the existing system.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Yogurt Mamas can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Yogurt Mamas can use these opportunities to build new business models that can help the communities that Yogurt Mamas operates in. Secondly it can use opportunities from government spending in Global Business sector.
Using analytics as competitive advantage
– Yogurt Mamas 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 Yogurt Mamas: Probiotics in Tanzania - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Yogurt Mamas to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Yogurt Mamas 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.
Creating value in data economy
– The success of analytics program of Yogurt Mamas has opened avenues for new revenue streams for the organization in the industry. This can help Yogurt Mamas to build a more holistic ecosystem as suggested in the Yogurt Mamas: Probiotics in Tanzania case study. Yogurt Mamas can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Yogurt Mamas 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.
Learning at scale
– Online learning technologies has now opened space for Yogurt Mamas 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.
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. Yogurt Mamas can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Yogurt Mamas 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 Yogurt Mamas 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.
Better consumer reach
– The expansion of the 5G network will help Yogurt Mamas to increase its market reach. Yogurt Mamas 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.
Manufacturing automation
– Yogurt Mamas 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.
Threats Yogurt Mamas: Probiotics in Tanzania External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Yogurt Mamas: Probiotics in Tanzania are -
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 Yogurt Mamas in the Global Business sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Yogurt Mamas 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 Yogurt Mamas business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Yogurt Mamas 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 Yogurt Mamas: Probiotics in Tanzania .
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.
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. Yogurt Mamas can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Regulatory challenges
– Yogurt Mamas 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Yogurt Mamas in the Global Business industry. The Global Business industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
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. Yogurt Mamas 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.
Shortening product life cycle
– it is one of the major threat that Yogurt Mamas is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Yogurt Mamas
– 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 Yogurt Mamas.
Technology acceleration in Forth Industrial Revolution
– Yogurt Mamas has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Yogurt Mamas 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.
Weighted SWOT Analysis of Yogurt Mamas: Probiotics in Tanzania 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 Yogurt Mamas: Probiotics in Tanzania 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 Yogurt Mamas: Probiotics in Tanzania 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 Yogurt Mamas: Probiotics in Tanzania 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 Yogurt Mamas: Probiotics in Tanzania 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 Yogurt Mamas needs to make to build a sustainable competitive advantage.
