Global Wine Wars: New World Challenges Old (A), Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Global Wine Wars: New World Challenges Old (A), Spanish Version
After contrasting development in the tradition-based, regulated, old-world wine industry with the technology-based, market-oriented, new-world challenges, this case focuses on "The Battle for Britain"--the huge, bellwether export market--as the traditional French wines are challenged for leadership by the Australian newcomers in 2001. Allows analysis of the way in which newcomers can change the rules of competitive engagement in a global industry. Also poses the question of how incumbents can respond, especially when constrained by regulation, tradition, embedded values, and a different set of capabilities than those demanded by the emerging market.
Authors :: Christopher A. Bartlett, Janet Cornebise, Andrew N. McLean
Swot Analysis of "Global Wine Wars: New World Challenges Old (A), Spanish Version" written by Christopher A. Bartlett, Janet Cornebise, Andrew N. McLean includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Newcomers Tradition facing as an external strategic factors. Some of the topics covered in Global Wine Wars: New World Challenges Old (A), Spanish Version case study are - Strategic Management Strategies, Emerging markets, Globalization, Innovation, Manufacturing and Global Business.
Some of the macro environment factors that can be used to understand the Global Wine Wars: New World Challenges Old (A), Spanish Version casestudy better are - – digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, wage bills are increasing, challanges to central banks by blockchain based private currencies,
increasing energy prices, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Global Wine Wars: New World Challenges Old (A), Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Global Wine Wars: New World Challenges Old (A), Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Newcomers Tradition, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Newcomers Tradition 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 Global Wine Wars: New World Challenges Old (A), Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in Global Wine Wars: New World Challenges Old (A), Spanish Version case study
2. Improving business portfolio management of Newcomers Tradition
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 Newcomers Tradition
Strengths Global Wine Wars: New World Challenges Old (A), Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Newcomers Tradition in Global Wine Wars: New World Challenges Old (A), Spanish Version Harvard Business Review case study are -
Ability to lead change in Global Business field
– Newcomers Tradition 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 Newcomers Tradition in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Global Business industry
– Global Wine Wars: New World Challenges Old (A), Spanish Version firm has clearly differentiated products in the market place. This has enabled Newcomers Tradition to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Newcomers Tradition to invest into research and development (R&D) and innovation.
Strong track record of project management
– Newcomers Tradition is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Newcomers Tradition has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Newcomers Tradition to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Newcomers Tradition
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Newcomers Tradition does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Newcomers Tradition is present in almost all the verticals within the industry. This has provided firm in Global Wine Wars: New World Challenges Old (A), Spanish Version 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.
Learning organization
- Newcomers Tradition 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 Newcomers Tradition is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Global Wine Wars: New World Challenges Old (A), Spanish Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Newcomers Tradition 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 Newcomers Tradition in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Newcomers Tradition digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Newcomers Tradition 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.
Operational resilience
– The operational resilience strategy in the Global Wine Wars: New World Challenges Old (A), Spanish Version 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.
Successful track record of launching new products
– Newcomers Tradition has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Newcomers Tradition 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.
Weaknesses Global Wine Wars: New World Challenges Old (A), Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Global Wine Wars: New World Challenges Old (A), Spanish Version are -
Interest costs
– Compare to the competition, Newcomers Tradition 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.
High cash cycle compare to competitors
Newcomers Tradition 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.
No frontier risks strategy
– After analyzing the HBR case study Global Wine Wars: New World Challenges Old (A), Spanish Version, 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.
Capital Spending Reduction
– Even during the low interest decade, Newcomers Tradition 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Newcomers Tradition is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Global Wine Wars: New World Challenges Old (A), Spanish Version 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, Newcomers Tradition 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. Newcomers Tradition even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High bargaining power of channel partners
– Because of the regulatory requirements, Christopher A. Bartlett, Janet Cornebise, Andrew N. McLean suggests that, Newcomers Tradition 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 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 Newcomers Tradition supply chain. Even after few cautionary changes mentioned in the HBR case study - Global Wine Wars: New World Challenges Old (A), Spanish Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Newcomers Tradition vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Global Wine Wars: New World Challenges Old (A), Spanish Version, in the dynamic environment Newcomers Tradition has struggled to respond to the nimble upstart competition. Newcomers Tradition has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Global Wine Wars: New World Challenges Old (A), Spanish Version, is just above the industry average. Newcomers Tradition 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.
Lack of clear differentiation of Newcomers Tradition products
– To increase the profitability and margins on the products, Newcomers Tradition needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Global Wine Wars: New World Challenges Old (A), Spanish Version | 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 Global Wine Wars: New World Challenges Old (A), Spanish Version are -
Loyalty marketing
– Newcomers Tradition 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.
Buying journey improvements
– Newcomers Tradition can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Global Wine Wars: New World Challenges Old (A), Spanish Version 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.
Building a culture of innovation
– managers at Newcomers Tradition 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 Newcomers Tradition 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 Newcomers Tradition to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Newcomers Tradition is facing challenges because of the dominance of functional experts in the organization. Global Wine Wars: New World Challenges Old (A), Spanish Version 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Newcomers Tradition can use these opportunities to build new business models that can help the communities that Newcomers Tradition operates in. Secondly it can use opportunities from government spending in Global Business sector.
Leveraging digital technologies
– Newcomers Tradition 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.
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. Newcomers Tradition can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Newcomers Tradition 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Newcomers Tradition 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.
Better consumer reach
– The expansion of the 5G network will help Newcomers Tradition to increase its market reach. Newcomers Tradition will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Newcomers Tradition in the consumer business. Now Newcomers Tradition can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Newcomers Tradition 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 Global Wine Wars: New World Challenges Old (A), Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Global Wine Wars: New World Challenges Old (A), Spanish Version are -
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. Newcomers Tradition needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Newcomers Tradition 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.
Regulatory challenges
– Newcomers Tradition 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.
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. Newcomers Tradition can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Newcomers Tradition business can come under increasing regulations regarding data privacy, data security, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Newcomers Tradition 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Global Wine Wars: New World Challenges Old (A), Spanish Version, Newcomers Tradition 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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Newcomers Tradition with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Technology acceleration in Forth Industrial Revolution
– Newcomers Tradition has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Newcomers Tradition 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.
Consumer confidence and its impact on Newcomers Tradition 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 Newcomers Tradition in the Global Business sector and impact the bottomline of the organization.
Environmental challenges
– Newcomers Tradition 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. Newcomers Tradition can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Weighted SWOT Analysis of Global Wine Wars: New World Challenges Old (A), Spanish Version 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 Global Wine Wars: New World Challenges Old (A), Spanish Version 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 Global Wine Wars: New World Challenges Old (A), Spanish Version 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 Global Wine Wars: New World Challenges Old (A), Spanish Version 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 Global Wine Wars: New World Challenges Old (A), Spanish Version 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 Newcomers Tradition needs to make to build a sustainable competitive advantage.
