VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context
The business world-over, and especially in emerging markets, is undergoing a radical transformation with respect to markets, consumers, suppliers, and technology. While multinational organizations can benefit through cumulative knowledge expertise of managers who had worked in emerging markets, the planning of survival and competition strategies of small-scale businesses run by entrepreneurs, offers tremendous knowledge potential. The case looks at the antecedents and process of transformation of a small-scale Indian firm, VNFPP Ltd., into a marketing-oriented organization, through the lens of holistic marketing. VNFPP Ltd. was in the process of shifting its focus from exporting pickled and processed agro-products to select customers abroad, to domestic markets with an entirely new product/product line. The managing director, P S Madhusudhan (Madhu), was concerned about the process of transformation of the organization with a predominant sales-orientation to a customer-focused marketing company. Preliminary research suggested that an opportunity existed for one of VNFPP's products in the Indian market among the burgeoning class of Indian IT professionals. The real concern for VNFPP would be in designing an appropriate marketing organization. Until then, all employees had a product orientation, with a marked absence of any kind of marketing concept. Holistic marketing and internal marketing were concepts that were formulated for large companies. Incorporating them in a small-scale industry was full of complexities and challenges. The case is about how VNFPP could come to grips with such challenges.
Swot Analysis of "VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context" written by S. Ramesh Kumar, Arun Bhattacharyya includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Vnfpp Marketing facing as an external strategic factors. Some of the topics covered in VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context case study are - Strategic Management Strategies, Entrepreneurship, Marketing, Organizational structure and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, there is increasing trade war between United States & China,
cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Vnfpp Marketing, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Vnfpp Marketing 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 VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context can be done for the following purposes –
1. Strategic planning using facts provided in VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context case study
2. Improving business portfolio management of Vnfpp Marketing
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 Vnfpp Marketing
Strengths VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Vnfpp Marketing in VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context Harvard Business Review case study are -
Effective Research and Development (R&D)
– Vnfpp Marketing 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 VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Vnfpp Marketing in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Vnfpp Marketing 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.
Ability to lead change in Innovation & Entrepreneurship field
– Vnfpp Marketing 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 Vnfpp Marketing in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Vnfpp Marketing 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 Vnfpp Marketing is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context 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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context firm has clearly differentiated products in the market place. This has enabled Vnfpp Marketing to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Vnfpp Marketing to invest into research and development (R&D) and innovation.
Training and development
– Vnfpp Marketing has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context 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.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Vnfpp Marketing digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Vnfpp Marketing 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.
Low bargaining power of suppliers
– Suppliers of Vnfpp Marketing in the sector have low bargaining power. VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Vnfpp Marketing to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Vnfpp Marketing 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 S. Ramesh Kumar, Arun Bhattacharyya 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.
Organizational Resilience of Vnfpp Marketing
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Vnfpp Marketing does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context are -
High operating costs
– Compare to the competitors, firm in the HBR case study VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context 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 Vnfpp Marketing 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Vnfpp Marketing 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. Vnfpp Marketing 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.
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 Vnfpp Marketing supply chain. Even after few cautionary changes mentioned in the HBR case study - VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Vnfpp Marketing vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Vnfpp Marketing products
– To increase the profitability and margins on the products, Vnfpp Marketing needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context 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 VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context can leverage the sales team experience to cultivate customer relationships as Vnfpp Marketing is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Vnfpp Marketing, firm in the HBR case study VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Capital Spending Reduction
– Even during the low interest decade, Vnfpp Marketing 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.
Interest costs
– Compare to the competition, Vnfpp Marketing 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.
Need for greater diversity
– Vnfpp Marketing 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.
Increasing silos among functional specialists
– The organizational structure of Vnfpp Marketing is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Vnfpp Marketing needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Vnfpp Marketing to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, S. Ramesh Kumar, Arun Bhattacharyya suggests that, Vnfpp Marketing 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.
Opportunities VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context | 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 VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context are -
Loyalty marketing
– Vnfpp Marketing 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. Vnfpp Marketing 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. Vnfpp Marketing 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 Vnfpp Marketing can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Vnfpp Marketing can use these opportunities to build new business models that can help the communities that Vnfpp Marketing operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Vnfpp Marketing 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 Vnfpp Marketing to hire the very best people irrespective of their geographical location.
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. Vnfpp Marketing can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Vnfpp Marketing 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.
Better consumer reach
– The expansion of the 5G network will help Vnfpp Marketing to increase its market reach. Vnfpp Marketing 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.
Manufacturing automation
– Vnfpp Marketing 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.
Using analytics as competitive advantage
– Vnfpp Marketing 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 VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Vnfpp Marketing to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Vnfpp Marketing can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Vnfpp Marketing 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, VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context, 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 Vnfpp Marketing in the consumer business. Now Vnfpp Marketing can target international markets with far fewer capital restrictions requirements than the existing system.
Threats VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context 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 Vnfpp Marketing business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Vnfpp Marketing 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.
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 Vnfpp Marketing.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context, Vnfpp Marketing 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
– Vnfpp Marketing 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.
Stagnating economy with rate increase
– Vnfpp Marketing 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.
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. Vnfpp Marketing needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Vnfpp Marketing is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Vnfpp Marketing 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Vnfpp Marketing with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Vnfpp Marketing can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Vnfpp Marketing
– 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 Vnfpp Marketing.
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 Vnfpp Marketing in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Weighted SWOT Analysis of VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context 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 VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context 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 VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context 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 VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context 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 VNFPP LTD.: Using Holistic Marketing in a Small Enterprise Context 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 Vnfpp Marketing needs to make to build a sustainable competitive advantage.
