The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note
Discourses on the links between eating, health, and social standing in America have deep roots. As mechanisms of food production, distribution and storage were developed in the nineteenth century, Americans began receiving information about what to and not-to eat, from public and religious figures, scientists, government officials, and food companies. In an increasingly industrializing and urbanizing society, such information translated into consumer decisions that had both economic and cultural antecedents and consequences. Even before the growth in the market for organic, health, and gourmet foods in the late twentieth and early twenty-first century, food choices were associated with lifestyle.
Swot Analysis of "The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note" written by Mukti Khaire, Eleanor Kenyon includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Food Discourses facing as an external strategic factors. Some of the topics covered in The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note case study are - Strategic Management Strategies, and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note casestudy better are - – cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%,
there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Food Discourses, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Food Discourses 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 The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note can be done for the following purposes –
1. Strategic planning using facts provided in The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note case study
2. Improving business portfolio management of Food Discourses
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 Food Discourses
Strengths The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Food Discourses in The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note Harvard Business Review case study are -
Diverse revenue streams
– Food Discourses is present in almost all the verticals within the industry. This has provided firm in The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note 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.
Analytics focus
– Food Discourses 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 Mukti Khaire, Eleanor Kenyon 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.
Operational resilience
– The operational resilience strategy in the The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Ability to lead change in Innovation & Entrepreneurship field
– Food Discourses 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 Food Discourses in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Food Discourses has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Food Discourses to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Food Discourses
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Food Discourses does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Food Discourses 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.
Cross disciplinary teams
– Horizontal connected teams at the Food Discourses 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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note firm has clearly differentiated products in the market place. This has enabled Food Discourses to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Food Discourses to invest into research and development (R&D) and innovation.
Learning organization
- Food Discourses 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 Food Discourses is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Food Discourses is one of the leading recruiters in the industry. Managers in the The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Food Discourses is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note are -
Low market penetration in new markets
– Outside its home market of Food Discourses, firm in the HBR case study The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Food Discourses supply chain. Even after few cautionary changes mentioned in the HBR case study - The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Food Discourses vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Food Discourses 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note 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 Food Discourses has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note, in the dynamic environment Food Discourses has struggled to respond to the nimble upstart competition. Food Discourses has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note 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 Food Discourses 's lucrative customers.
Products dominated business model
– Even though Food Discourses 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 - The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Food Discourses 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.
Increasing silos among functional specialists
– The organizational structure of Food Discourses is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Food Discourses needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Food Discourses to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note HBR case study mentions - Food Discourses 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.
No frontier risks strategy
– After analyzing the HBR case study The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note, 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.
Opportunities The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note | 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 The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note are -
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 Food Discourses 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.
Loyalty marketing
– Food Discourses 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.
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. Food Discourses can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Food Discourses is facing challenges because of the dominance of functional experts in the organization. The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note 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.
Learning at scale
– Online learning technologies has now opened space for Food Discourses 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.
Developing new processes and practices
– Food Discourses 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.
Building a culture of innovation
– managers at Food Discourses 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Food Discourses can use these opportunities to build new business models that can help the communities that Food Discourses 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, Food Discourses 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, The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Food Discourses in the consumer business. Now Food Discourses can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Food Discourses 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 The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Food Discourses to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Food Discourses 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. Food Discourses 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Food Discourses 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.
Threats The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note are -
Increasing wage structure of Food Discourses
– 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 Food Discourses.
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. Food Discourses can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Food Discourses has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Food Discourses 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.
Regulatory challenges
– Food Discourses 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.
High dependence on third party suppliers
– Food Discourses 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.
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 Food Discourses in the Innovation & Entrepreneurship sector and impact the bottomline 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 Food Discourses business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Food Discourses 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. Food Discourses 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 The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note, Food Discourses 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 .
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 Food Discourses.
Shortening product life cycle
– it is one of the major threat that Food Discourses 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 Food Discourses with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note 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 The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note 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 The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note 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 The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note 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 The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note 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 Food Discourses needs to make to build a sustainable competitive advantage.
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