Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks
Jonathan Miller appeared in September 2009 on "Shark Tank", the ABC television reality show featuring entrepreneurs versus angel investors in a discussion of the business value proposition and to win a negotiation for an investment from one of the 4 Sharks. The company he founded, Element Bars, a maker of custom energy bars, needed investment capital. Prior to appearing on the show, Miller had considered several financing options available to entrepreneurs: loans and other debt capital and equity capital, each of which are evaluated in the case. Miller had a good feel for the different types of capital to use for this new venture, having started several ventures in the past and winning the Kellogg School of Management business plan competition, the Kellogg Cup, in 2008. The case includes Miller's decision to forego the investment offer he won on television, instead he pursued lower cost of capital equity.
Authors :: James Shein, Matt Bell, Scott T. Whitaker
Swot Analysis of "Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks" written by James Shein, Matt Bell, Scott T. Whitaker includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Miller Sharks facing as an external strategic factors. Some of the topics covered in Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks case study are - Strategic Management Strategies, Costs, Entrepreneurial finance, Financial analysis and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks casestudy better are - – increasing commodity prices, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , there is increasing trade war between United States & China,
increasing energy prices, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Miller Sharks, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Miller Sharks 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 Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks can be done for the following purposes –
1. Strategic planning using facts provided in Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks case study
2. Improving business portfolio management of Miller Sharks
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Miller Sharks
Strengths Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Miller Sharks in Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Miller Sharks in the sector have low bargaining power. Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Miller Sharks to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Miller Sharks 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 recruit top talent
– Miller Sharks is one of the leading recruiters in the industry. Managers in the Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Miller Sharks has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks 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.
Organizational Resilience of Miller Sharks
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Miller Sharks does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Miller Sharks 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.
Diverse revenue streams
– Miller Sharks is present in almost all the verticals within the industry. This has provided firm in Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks 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.
Successful track record of launching new products
– Miller Sharks has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Miller Sharks 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.
High brand equity
– Miller Sharks has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Miller Sharks to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Miller Sharks in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks firm has clearly differentiated products in the market place. This has enabled Miller Sharks to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Miller Sharks to invest into research and development (R&D) and innovation.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Miller Sharks digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Miller Sharks 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.
Weaknesses Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks are -
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 Miller Sharks supply chain. Even after few cautionary changes mentioned in the HBR case study - Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Miller Sharks 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 Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks, in the dynamic environment Miller Sharks has struggled to respond to the nimble upstart competition. Miller Sharks has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Miller Sharks 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 operating costs
– Compare to the competitors, firm in the HBR case study Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks 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 Miller Sharks 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks 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 Miller Sharks has relatively successful track record of launching new products.
High bargaining power of channel partners
– Because of the regulatory requirements, James Shein, Matt Bell, Scott T. Whitaker suggests that, Miller Sharks 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.
Products dominated business model
– Even though Miller Sharks 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 - Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Miller Sharks has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Slow to strategic competitive environment developments
– As Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks HBR case study mentions - Miller Sharks 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, Miller Sharks 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.
Skills based hiring
– The stress on hiring functional specialists at Miller Sharks 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.
Opportunities Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks | 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 Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Miller Sharks 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 Miller Sharks to hire the very best people irrespective of their geographical location.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Miller Sharks can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Miller Sharks can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Better consumer reach
– The expansion of the 5G network will help Miller Sharks to increase its market reach. Miller Sharks 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.
Building a culture of innovation
– managers at Miller Sharks 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 Innovation & Entrepreneurship segment.
Low interest rates
– Even though inflation is raising its head in most developed economies, Miller Sharks 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.
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 Miller Sharks in the consumer business. Now Miller Sharks can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Miller Sharks is facing challenges because of the dominance of functional experts in the organization. Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks 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
– Miller Sharks can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Miller Sharks 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, Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Miller Sharks can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Miller Sharks has opened avenues for new revenue streams for the organization in the industry. This can help Miller Sharks to build a more holistic ecosystem as suggested in the Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks case study. Miller Sharks can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Miller Sharks can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship 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.
Using analytics as competitive advantage
– Miller Sharks 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 Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Miller Sharks to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks are -
Easy access to finance
– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Miller Sharks can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Miller Sharks 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. Miller Sharks can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks, Miller Sharks may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
Consumer confidence and its impact on Miller Sharks 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.
Technology acceleration in Forth Industrial Revolution
– Miller Sharks has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Miller Sharks needs to keep up with the evolution of technology in the Innovation & Entrepreneurship 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.
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.
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 Miller Sharks business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Miller Sharks
– 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 Miller Sharks.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Miller Sharks 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 Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks .
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 Miller Sharks in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
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. Miller Sharks 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.
Regulatory challenges
– Miller Sharks 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 Innovation & Entrepreneurship industry regulations.
Shortening product life cycle
– it is one of the major threat that Miller Sharks is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks 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 Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks 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 Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks 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 Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks 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 Jonathan Miller: Custom Energy Bar Entrepreneur Pitches Sharks 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 Miller Sharks needs to make to build a sustainable competitive advantage.
