Inniskillin and the Globalization of Icewine SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Inniskillin and the Globalization of Icewine

Deals with the growth of the icewine industry and follows Vincor International as it creates an international market for its Inniskillin Icewine--a luxury alcoholic beverage consumed as a dessert wine. Gives the history of the alcoholic beverage industry in Canada and details trends in the current global wine industry. Follows Roger Provost (HBS MBA 1980), chief marketing officer for Canadian-based Vincor, as he develops Inniskillin's initial marketing strategy within Canada. Goes on to detail Inniskillin's challenges as it enters other markets, initially through the travel retail distribution channel. Deals with issues in brand management, product development, and international marketing. Explores the opportunities and challenges facing luxury niche products in the global economy.

Authors :: Geoffrey G. Jones, Jillian Hirasawa

Topics :: Innovation & Entrepreneurship

Tags :: Business history, Entrepreneurship, International business, Product development, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Inniskillin and the Globalization of Icewine" written by Geoffrey G. Jones, Jillian Hirasawa includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Icewine Inniskillin facing as an external strategic factors. Some of the topics covered in Inniskillin and the Globalization of Icewine case study are - Strategic Management Strategies, Business history, Entrepreneurship, International business, Product development and Innovation & Entrepreneurship.

Some of the macro environment factors that can be used to understand the Inniskillin and the Globalization of Icewine casestudy better are - – talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, increasing commodity prices, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, etc

---

---

---

---

Introduction to SWOT Analysis of Inniskillin and the Globalization of Icewine

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Inniskillin and the Globalization of Icewine case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Icewine Inniskillin, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Icewine Inniskillin 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 Inniskillin and the Globalization of Icewine can be done for the following purposes –
1. Strategic planning using facts provided in Inniskillin and the Globalization of Icewine case study
2. Improving business portfolio management of Icewine Inniskillin
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 Icewine Inniskillin

---

Strengths Inniskillin and the Globalization of Icewine | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Icewine Inniskillin in Inniskillin and the Globalization of Icewine Harvard Business Review case study are -

Innovation driven organization

– Icewine Inniskillin is one of the most innovative firm in sector. Manager in Inniskillin and the Globalization of Icewine Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Ability to lead change in Innovation & Entrepreneurship field

– Icewine Inniskillin 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 Icewine Inniskillin in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Learning organization

- Icewine Inniskillin 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 Icewine Inniskillin is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Inniskillin and the Globalization of Icewine Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Training and development

– Icewine Inniskillin has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Inniskillin and the Globalization of Icewine 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.

Sustainable margins compare to other players in Innovation & Entrepreneurship industry

– Inniskillin and the Globalization of Icewine firm has clearly differentiated products in the market place. This has enabled Icewine Inniskillin to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Icewine Inniskillin to invest into research and development (R&D) and innovation.

Cross disciplinary teams

– Horizontal connected teams at the Icewine Inniskillin 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.

Superior customer experience

– The customer experience strategy of Icewine Inniskillin in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

High brand equity

– Icewine Inniskillin has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Icewine Inniskillin to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Successful track record of launching new products

– Icewine Inniskillin has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Icewine Inniskillin has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.

High switching costs

– The high switching costs that Icewine Inniskillin 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.

Analytics focus

– Icewine Inniskillin 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 Geoffrey G. Jones, Jillian Hirasawa 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)

– Icewine Inniskillin 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 Inniskillin and the Globalization of Icewine - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

---

---

Weaknesses Inniskillin and the Globalization of Icewine | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Inniskillin and the Globalization of Icewine are -

Aligning sales with marketing

– It come across in the case study Inniskillin and the Globalization of Icewine 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 Inniskillin and the Globalization of Icewine can leverage the sales team experience to cultivate customer relationships as Icewine Inniskillin is planning to shift buying processes online.

Increasing silos among functional specialists

– The organizational structure of Icewine Inniskillin is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Icewine Inniskillin needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Icewine Inniskillin to focus more on services rather than just following the product oriented approach.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Inniskillin and the Globalization of Icewine, in the dynamic environment Icewine Inniskillin has struggled to respond to the nimble upstart competition. Icewine Inniskillin has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

High bargaining power of channel partners

– Because of the regulatory requirements, Geoffrey G. Jones, Jillian Hirasawa suggests that, Icewine Inniskillin 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 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 Icewine Inniskillin supply chain. Even after few cautionary changes mentioned in the HBR case study - Inniskillin and the Globalization of Icewine, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Icewine Inniskillin vulnerable to further global disruptions in South East Asia.

High operating costs

– Compare to the competitors, firm in the HBR case study Inniskillin and the Globalization of Icewine 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 Icewine Inniskillin 's lucrative customers.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Inniskillin and the Globalization of Icewine, it seems that the employees of Icewine Inniskillin 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.

Interest costs

– Compare to the competition, Icewine Inniskillin has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.

Workers concerns about automation

– As automation is fast increasing in the segment, Icewine Inniskillin 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.

Slow to strategic competitive environment developments

– As Inniskillin and the Globalization of Icewine HBR case study mentions - Icewine Inniskillin 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.

Products dominated business model

– Even though Icewine Inniskillin 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 - Inniskillin and the Globalization of Icewine should strive to include more intangible value offerings along with its core products and services.

---

Opportunities Inniskillin and the Globalization of Icewine | 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 Inniskillin and the Globalization of Icewine 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 Icewine Inniskillin 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.

Manufacturing automation

– Icewine Inniskillin 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.

Developing new processes and practices

– Icewine Inniskillin 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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Icewine Inniskillin can use these opportunities to build new business models that can help the communities that Icewine Inniskillin operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.

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. Icewine Inniskillin 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. Icewine Inniskillin 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 Icewine Inniskillin can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Buying journey improvements

– Icewine Inniskillin can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Inniskillin and the Globalization of Icewine 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Icewine Inniskillin 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.

Leveraging digital technologies

– Icewine Inniskillin 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.

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 Icewine Inniskillin in the consumer business. Now Icewine Inniskillin can target international markets with far fewer capital restrictions requirements than the existing system.

Using analytics as competitive advantage

– Icewine Inniskillin 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 Inniskillin and the Globalization of Icewine - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Icewine Inniskillin to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Better consumer reach

– The expansion of the 5G network will help Icewine Inniskillin to increase its market reach. Icewine Inniskillin will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.

Building a culture of innovation

– managers at Icewine Inniskillin 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.

---

Threats Inniskillin and the Globalization of Icewine External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Inniskillin and the Globalization of Icewine are -

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 Icewine Inniskillin business can come under increasing regulations regarding data privacy, data security, etc.

Increasing wage structure of Icewine Inniskillin

– 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 Icewine Inniskillin.

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. Icewine Inniskillin can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

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.

Regulatory challenges

– Icewine Inniskillin 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.

Stagnating economy with rate increase

– Icewine Inniskillin can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Icewine Inniskillin 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 Inniskillin and the Globalization of Icewine .

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 Icewine Inniskillin in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.

Shortening product life cycle

– it is one of the major threat that Icewine Inniskillin is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

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.

Consumer confidence and its impact on Icewine Inniskillin 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.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Icewine Inniskillin with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

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. Icewine Inniskillin 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.

---

Weighted SWOT Analysis of Inniskillin and the Globalization of Icewine 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 Inniskillin and the Globalization of Icewine 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 Inniskillin and the Globalization of Icewine 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 Inniskillin and the Globalization of Icewine 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 Inniskillin and the Globalization of Icewine 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 Icewine Inniskillin needs to make to build a sustainable competitive advantage.

--- ---