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 inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, wage bills are increasing, increasing energy prices, talent flight as more people leaving formal jobs,
banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, 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 -
Low bargaining power of suppliers
– Suppliers of Hirshberg Stonyfield in the sector have low bargaining power. Gary Hirshberg and Stonyfield Farm has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hirshberg Stonyfield to manage not only supply disruptions but also source products at highly competitive prices.
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.
Training and development
– Hirshberg Stonyfield has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Gary Hirshberg and Stonyfield Farm 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.
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.
Operational resilience
– The operational resilience strategy in the Gary Hirshberg and Stonyfield Farm 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.
Superior customer experience
– The customer experience strategy of Hirshberg Stonyfield in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Hirshberg Stonyfield 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 Nancy F. Koehn, Nora N. Khan, Elizabeth Legris 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.
Effective Research and Development (R&D)
– Hirshberg Stonyfield has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Gary Hirshberg and Stonyfield Farm - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Gary Hirshberg and Stonyfield Farm firm has clearly differentiated products in the market place. This has enabled Hirshberg Stonyfield to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Hirshberg Stonyfield to invest into research and development (R&D) and innovation.
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.
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.
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.
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 -
Need for greater diversity
– Hirshberg Stonyfield 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 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.
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.
Increasing silos among functional specialists
– The organizational structure of Hirshberg Stonyfield is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Hirshberg Stonyfield needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Hirshberg Stonyfield to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Nancy F. Koehn, Nora N. Khan, Elizabeth Legris suggests that, Hirshberg Stonyfield 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 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Gary Hirshberg and Stonyfield Farm 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 Hirshberg Stonyfield 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Gary Hirshberg and Stonyfield Farm 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 Gary Hirshberg and Stonyfield Farm can leverage the sales team experience to cultivate customer relationships as Hirshberg Stonyfield is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Hirshberg Stonyfield 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. Hirshberg Stonyfield 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.
Capital Spending Reduction
– Even during the low interest decade, Hirshberg Stonyfield 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.
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.
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.
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.
Learning at scale
– Online learning technologies has now opened space for Hirshberg Stonyfield 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Hirshberg Stonyfield can use these opportunities to build new business models that can help the communities that Hirshberg Stonyfield operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Hirshberg Stonyfield 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, Gary Hirshberg and Stonyfield Farm, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Loyalty marketing
– Hirshberg Stonyfield 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.
Better consumer reach
– The expansion of the 5G network will help Hirshberg Stonyfield to increase its market reach. Hirshberg Stonyfield 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.
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.
Manufacturing automation
– Hirshberg Stonyfield 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.
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.
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.
Leveraging digital technologies
– Hirshberg Stonyfield 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.
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.
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 -
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.
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.
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.
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 Hirshberg Stonyfield in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
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 .
High dependence on third party suppliers
– Hirshberg Stonyfield high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
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.
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. Hirshberg Stonyfield 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Hirshberg Stonyfield in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship 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.
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.
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.
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.