Gary Hirshberg and Stonyfield Farm SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Gary Hirshberg and Stonyfield Farm
Gary Hirshberg and Stonyfield Farm is the story of one entrepreneur's vision and journey to create a market-leading, environmentally responsible business founded on the principles of product quality, organizational alignment and sustainability. A former environmental activist, Hirshberg built Stonyfield Farm, (an organic yogurt maker based in New Hampshire), up from a seven cow-operation into a business that in 2010 had $360 million in annual revenues. The narrative pays particular attention to the early, turbulent years of the yogurt company and the excitement and uncertainty of entrepreneurial life. The case also details the supple, innovative marketing the company created to expand its customer base, the means it devised to cultivate and maintain customer loyalty, and the strategies it employed to penetrate the highly competitive yogurt and dairy categories nationwide. Throughout, readers will encounter the challenges that Hirshberg, his colleagues and his family confronted as they (all) worked to create a business with a firm commitment to both sustainability and high quality--a commitment rooted in Hirshberg's dedication to spreading the "gospel" of organic production to consumers.
Authors :: Nancy F. Koehn, Nora N. Khan, Elizabeth Legris
Swot Analysis of "Gary Hirshberg and Stonyfield Farm" written by Nancy F. Koehn, Nora N. Khan, Elizabeth Legris includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hirshberg Stonyfield facing as an external strategic factors. Some of the topics covered in Gary Hirshberg and Stonyfield Farm case study are - Strategic Management Strategies, Corporate governance, Entrepreneurship, Experimentation, Intellectual property, Organizational culture, Performance measurement, Social responsibility, Sustainability, Technology and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Gary Hirshberg and Stonyfield Farm casestudy better are - – increasing energy prices, supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs,
competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, etc
Introduction to SWOT Analysis of Gary Hirshberg and Stonyfield Farm
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Gary Hirshberg and Stonyfield Farm case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hirshberg Stonyfield, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hirshberg Stonyfield 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 Gary Hirshberg and Stonyfield Farm can be done for the following purposes –
1. Strategic planning using facts provided in Gary Hirshberg and Stonyfield Farm case study
2. Improving business portfolio management of Hirshberg Stonyfield
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 Hirshberg Stonyfield
Strengths Gary Hirshberg and Stonyfield Farm | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hirshberg Stonyfield in Gary Hirshberg and Stonyfield Farm Harvard Business Review case study are -
Successful track record of launching new products
– Hirshberg Stonyfield has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hirshberg Stonyfield has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Strong track record of project management
– Hirshberg Stonyfield is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Hirshberg Stonyfield 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 Gary Hirshberg and Stonyfield Farm HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Hirshberg Stonyfield is one of the most innovative firm in sector. Manager in Gary Hirshberg and Stonyfield Farm Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Hirshberg Stonyfield 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 Hirshberg Stonyfield is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Gary Hirshberg and Stonyfield Farm Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Hirshberg Stonyfield has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hirshberg Stonyfield to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Innovation & Entrepreneurship field
– Hirshberg Stonyfield 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 Hirshberg Stonyfield in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Hirshberg Stonyfield 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
– Hirshberg Stonyfield is one of the leading recruiters in the industry. Managers in the Gary Hirshberg and Stonyfield Farm are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Hirshberg Stonyfield digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hirshberg Stonyfield 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.
Organizational Resilience of Hirshberg Stonyfield
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Hirshberg Stonyfield does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Hirshberg Stonyfield is present in almost all the verticals within the industry. This has provided firm in Gary Hirshberg and Stonyfield Farm 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.
Weaknesses Gary Hirshberg and Stonyfield Farm | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Gary Hirshberg and Stonyfield Farm are -
Skills based hiring
– The stress on hiring functional specialists at Hirshberg Stonyfield 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.
No frontier risks strategy
– After analyzing the HBR case study Gary Hirshberg and Stonyfield Farm, it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Hirshberg Stonyfield is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Gary Hirshberg and Stonyfield Farm can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Hirshberg Stonyfield 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 - Gary Hirshberg and Stonyfield Farm should strive to include more intangible value offerings along with its core products and services.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Gary Hirshberg and Stonyfield Farm 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 Hirshberg Stonyfield has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Hirshberg Stonyfield needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High cash cycle compare to competitors
Hirshberg Stonyfield 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 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 Hirshberg Stonyfield supply chain. Even after few cautionary changes mentioned in the HBR case study - Gary Hirshberg and Stonyfield Farm, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hirshberg Stonyfield vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Hirshberg Stonyfield, firm in the HBR case study Gary Hirshberg and Stonyfield Farm needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Gary Hirshberg and Stonyfield Farm, in the dynamic environment Hirshberg Stonyfield has struggled to respond to the nimble upstart competition. Hirshberg Stonyfield 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 Gary Hirshberg and Stonyfield Farm, is just above the industry average. Hirshberg Stonyfield 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.
Opportunities Gary Hirshberg and Stonyfield Farm | 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 Gary Hirshberg and Stonyfield Farm are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Hirshberg Stonyfield is facing challenges because of the dominance of functional experts in the organization. Gary Hirshberg and Stonyfield Farm 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.
Using analytics as competitive advantage
– Hirshberg Stonyfield 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 Gary Hirshberg and Stonyfield Farm - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hirshberg Stonyfield to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Hirshberg Stonyfield 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Hirshberg Stonyfield 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 Hirshberg Stonyfield to hire the very best people irrespective of their geographical location.
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. Hirshberg Stonyfield can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Hirshberg Stonyfield can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Gary Hirshberg and Stonyfield Farm 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.
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 Hirshberg Stonyfield in the consumer business. Now Hirshberg Stonyfield 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 Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Hirshberg Stonyfield can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Hirshberg Stonyfield can develop new processes and procedures in Innovation & Entrepreneurship 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.
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. Hirshberg Stonyfield 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. Hirshberg Stonyfield 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Hirshberg Stonyfield can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Hirshberg Stonyfield has opened avenues for new revenue streams for the organization in the industry. This can help Hirshberg Stonyfield to build a more holistic ecosystem as suggested in the Gary Hirshberg and Stonyfield Farm case study. Hirshberg Stonyfield can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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 Hirshberg Stonyfield 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.
Threats Gary Hirshberg and Stonyfield Farm External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Gary Hirshberg and Stonyfield Farm are -
Consumer confidence and its impact on Hirshberg Stonyfield 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.
Shortening product life cycle
– it is one of the major threat that Hirshberg Stonyfield is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Hirshberg Stonyfield with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Hirshberg Stonyfield has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Hirshberg Stonyfield 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.
Regulatory challenges
– Hirshberg Stonyfield 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.
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 Hirshberg Stonyfield business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Hirshberg Stonyfield
– 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 Hirshberg Stonyfield.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Gary Hirshberg and Stonyfield Farm, Hirshberg Stonyfield 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 .
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. Hirshberg Stonyfield can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Hirshberg Stonyfield 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 Gary Hirshberg and Stonyfield Farm .
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. Hirshberg Stonyfield needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
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 Hirshberg Stonyfield.
Weighted SWOT Analysis of Gary Hirshberg and Stonyfield Farm 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 Gary Hirshberg and Stonyfield Farm 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 Gary Hirshberg and Stonyfield Farm 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 Gary Hirshberg and Stonyfield Farm 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 Gary Hirshberg and Stonyfield Farm 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 Hirshberg Stonyfield needs to make to build a sustainable competitive advantage.
