Case Study Description of Devonian Coast Wineries: Overcoming Provincial Barriers
By late 2015, the chief executive officer of Devonian Coast Wineries in the Canadian province of Nova Scotia had invested in the business and had broadened the distribution of the wines he produced. His chief concern was growing sales beyond Nova Scotia's provincial borders. Selling wines in other provinces was difficult because it required approaching the various provincial liquor control boards. He had three options: continue to engage with each provincial liquor board's buyers, lobby for greater retail access, or pursue the removal of provincial barriers to wine trade within the Atlantic provinces. If all interprovincial barriers were removed, he would need to compete with other provinces' larger wine producers, and they would likely gain market share at the expense of local wineries. What was the best strategy to expand Devonian Coast Wineries' distribution beyond Nova Scotia?
Swot Analysis of "Devonian Coast Wineries: Overcoming Provincial Barriers" written by W. Glenn Rowe, Paul Boothe, Ken Mark includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Wineries Provincial facing as an external strategic factors. Some of the topics covered in Devonian Coast Wineries: Overcoming Provincial Barriers case study are - Strategic Management Strategies, Regulation, Strategy and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Devonian Coast Wineries: Overcoming Provincial Barriers casestudy better are - – cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies,
increasing household debt because of falling income levels, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Devonian Coast Wineries: Overcoming Provincial Barriers
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Devonian Coast Wineries: Overcoming Provincial Barriers case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Wineries Provincial, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Wineries Provincial 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 Devonian Coast Wineries: Overcoming Provincial Barriers can be done for the following purposes –
1. Strategic planning using facts provided in Devonian Coast Wineries: Overcoming Provincial Barriers case study
2. Improving business portfolio management of Wineries Provincial
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Wineries Provincial
Strengths Devonian Coast Wineries: Overcoming Provincial Barriers | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Wineries Provincial in Devonian Coast Wineries: Overcoming Provincial Barriers Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Wineries Provincial in the sector have low bargaining power. Devonian Coast Wineries: Overcoming Provincial Barriers has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Wineries Provincial to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Wineries Provincial has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Wineries Provincial to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Wineries Provincial is one of the leading recruiters in the industry. Managers in the Devonian Coast Wineries: Overcoming Provincial Barriers are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Wineries Provincial 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 W. Glenn Rowe, Paul Boothe, Ken Mark 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Devonian Coast Wineries: Overcoming Provincial Barriers firm has clearly differentiated products in the market place. This has enabled Wineries Provincial to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Wineries Provincial to invest into research and development (R&D) and innovation.
Organizational Resilience of Wineries Provincial
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Wineries Provincial does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Wineries Provincial 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 Devonian Coast Wineries: Overcoming Provincial Barriers - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Wineries Provincial is present in almost all the verticals within the industry. This has provided firm in Devonian Coast Wineries: Overcoming Provincial Barriers 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.
High switching costs
– The high switching costs that Wineries Provincial 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.
Superior customer experience
– The customer experience strategy of Wineries Provincial in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Wineries Provincial 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 Devonian Coast Wineries: Overcoming Provincial Barriers HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Wineries Provincial 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 Devonian Coast Wineries: Overcoming Provincial Barriers | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Devonian Coast Wineries: Overcoming Provincial Barriers are -
Low market penetration in new markets
– Outside its home market of Wineries Provincial, firm in the HBR case study Devonian Coast Wineries: Overcoming Provincial Barriers needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Devonian Coast Wineries: Overcoming Provincial Barriers HBR case study mentions - Wineries Provincial 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 Wineries Provincial 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 - Devonian Coast Wineries: Overcoming Provincial Barriers should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Devonian Coast Wineries: Overcoming Provincial Barriers 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 Devonian Coast Wineries: Overcoming Provincial Barriers can leverage the sales team experience to cultivate customer relationships as Wineries Provincial is planning to shift buying processes online.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Devonian Coast Wineries: Overcoming Provincial Barriers 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 Wineries Provincial has relatively successful track record of launching new products.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Devonian Coast Wineries: Overcoming Provincial Barriers, it seems that the employees of Wineries Provincial 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.
Skills based hiring
– The stress on hiring functional specialists at Wineries Provincial 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.
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 Wineries Provincial supply chain. Even after few cautionary changes mentioned in the HBR case study - Devonian Coast Wineries: Overcoming Provincial Barriers, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Wineries Provincial vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Devonian Coast Wineries: Overcoming Provincial Barriers, in the dynamic environment Wineries Provincial has struggled to respond to the nimble upstart competition. Wineries Provincial has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Workers concerns about automation
– As automation is fast increasing in the segment, Wineries Provincial 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 bargaining power of channel partners
– Because of the regulatory requirements, W. Glenn Rowe, Paul Boothe, Ken Mark suggests that, Wineries Provincial 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 Devonian Coast Wineries: Overcoming Provincial Barriers | 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 Devonian Coast Wineries: Overcoming Provincial Barriers 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 Wineries Provincial in the consumer business. Now Wineries Provincial can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Wineries Provincial to increase its market reach. Wineries Provincial 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.
Developing new processes and practices
– Wineries Provincial can develop new processes and procedures in Leadership & Managing People 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Wineries Provincial can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Wineries Provincial 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Wineries Provincial is facing challenges because of the dominance of functional experts in the organization. Devonian Coast Wineries: Overcoming Provincial Barriers 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Wineries Provincial 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, Devonian Coast Wineries: Overcoming Provincial Barriers, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Wineries Provincial in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Loyalty marketing
– Wineries Provincial 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.
Building a culture of innovation
– managers at Wineries Provincial 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 Leadership & Managing People segment.
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. Wineries Provincial can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Wineries Provincial has opened avenues for new revenue streams for the organization in the industry. This can help Wineries Provincial to build a more holistic ecosystem as suggested in the Devonian Coast Wineries: Overcoming Provincial Barriers case study. Wineries Provincial can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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, Wineries Provincial can use these opportunities to build new business models that can help the communities that Wineries Provincial operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Threats Devonian Coast Wineries: Overcoming Provincial Barriers External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Devonian Coast Wineries: Overcoming Provincial Barriers are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Devonian Coast Wineries: Overcoming Provincial Barriers, Wineries Provincial may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Wineries Provincial in the Leadership & Managing People industry. The Leadership & Managing People 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.
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 Wineries Provincial in the Leadership & Managing People sector and impact the bottomline of the organization.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Wineries Provincial can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Wineries Provincial 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.
Stagnating economy with rate increase
– Wineries Provincial 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.
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. Wineries Provincial 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Wineries Provincial with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Wineries Provincial 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.
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.
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 Wineries Provincial business can come under increasing regulations regarding data privacy, data security, etc.
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 Wineries Provincial.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Wineries Provincial 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 Devonian Coast Wineries: Overcoming Provincial Barriers .
Weighted SWOT Analysis of Devonian Coast Wineries: Overcoming Provincial Barriers 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 Devonian Coast Wineries: Overcoming Provincial Barriers 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 Devonian Coast Wineries: Overcoming Provincial Barriers 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 Devonian Coast Wineries: Overcoming Provincial Barriers 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 Devonian Coast Wineries: Overcoming Provincial Barriers 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 Wineries Provincial needs to make to build a sustainable competitive advantage.