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, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, talent flight as more people leaving formal jobs,
banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, 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 -
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.
Low bargaining power of suppliers
– Suppliers of Food Discourses in the sector have low bargaining power. The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Food Discourses to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Food Discourses is one of the most innovative firm in sector. Manager in The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
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.
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.
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.
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.
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.
Effective Research and Development (R&D)
– Food Discourses 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 The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Food Discourses 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 The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Food Discourses has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Food Discourses has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Weaknesses 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 -
Skills based hiring
– The stress on hiring functional specialists at Food Discourses 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.
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.
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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note, it seems that the employees of Food Discourses don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Need for greater diversity
– Food Discourses 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.
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.
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.
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note, is just above the industry average. Food Discourses 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.
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.
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 -
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.
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.
Leveraging digital technologies
– Food Discourses 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.
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.
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Food Discourses can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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.
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.
Creating value in data economy
– The success of analytics program of Food Discourses has opened avenues for new revenue streams for the organization in the industry. This can help Food Discourses to build a more holistic ecosystem as suggested in the The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note case study. Food Discourses can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Food Discourses in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Food Discourses 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 Food Discourses 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. Food Discourses can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 -
Consumer confidence and its impact on Food Discourses 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.
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 .
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.
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.
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.
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.
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.
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.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Food Discourses 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 The Development of the Markets for Natural, Organic, and Health Foods in the U.S., Module Note .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Food Discourses 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.
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.
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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