Amul Dairy: Camel Milk Launch in India SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Amul Dairy: Camel Milk Launch in India
Amul Dairy, the market leader in the Indian milk industry, held its market position by pioneering several progressive initiatives and responding to consumer trends with continuous product development. Camel milk, a relatively new health-oriented dairy product, was being hailed as "white gold" and touted as a superfood in Australia and in some Western countries. Amul Dairy had an opportunity in 2015 to take advantage of changing consumer preferences and move ahead in the growing dairy market by launching the sale of camel milk in India. Should Amul Dairy enter the promising camel milk market? Given that Indian consumers were unaware of camel milk as a market product, how should Amul Dairy promote this unique product? How should the company leverage its substantial brand presence to overcome the challenges faced in the launch and distribution of camel milk? Sandeep Puri is affiliated with Institute of Management Technology, Ghaziabad. Brij Mohan Taneja is affiliated with Institute of Management Technology, Ghaziabad. Pratibha Gupta is affiliated with Institute of Management, Ghaziabad. Anirudh Menon is affiliated with Institute of Management, Ghaziabad.
Swot Analysis of "Amul Dairy: Camel Milk Launch in India" written by Sandeep Puri, Brij Mohan Taneja, Pratibha Gupta, Anirudh Menon includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Camel Amul facing as an external strategic factors. Some of the topics covered in Amul Dairy: Camel Milk Launch in India case study are - Strategic Management Strategies, International business, Product development, Strategy and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Amul Dairy: Camel Milk Launch in India casestudy better are - – increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , increasing energy prices, talent flight as more people leaving formal jobs, increasing transportation and logistics costs, central banks are concerned over increasing inflation,
competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Amul Dairy: Camel Milk Launch in India
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Amul Dairy: Camel Milk Launch in India case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Camel Amul, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Camel Amul 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 Amul Dairy: Camel Milk Launch in India can be done for the following purposes –
1. Strategic planning using facts provided in Amul Dairy: Camel Milk Launch in India case study
2. Improving business portfolio management of Camel Amul
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 Camel Amul
Strengths Amul Dairy: Camel Milk Launch in India | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Camel Amul in Amul Dairy: Camel Milk Launch in India Harvard Business Review case study are -
Diverse revenue streams
– Camel Amul is present in almost all the verticals within the industry. This has provided firm in Amul Dairy: Camel Milk Launch in India 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.
Highly skilled collaborators
– Camel Amul 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 Amul Dairy: Camel Milk Launch in India HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Camel Amul 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 Amul Dairy: Camel Milk Launch in India - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Camel Amul is one of the leading recruiters in the industry. Managers in the Amul Dairy: Camel Milk Launch in India are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Leadership & Managing People industry
– Amul Dairy: Camel Milk Launch in India firm has clearly differentiated products in the market place. This has enabled Camel Amul to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Camel Amul to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Camel Amul 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.
High switching costs
– The high switching costs that Camel Amul 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.
Training and development
– Camel Amul has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Amul Dairy: Camel Milk Launch in India 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.
Successful track record of launching new products
– Camel Amul has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Camel Amul 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.
Organizational Resilience of Camel Amul
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Camel Amul does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Camel Amul in the sector have low bargaining power. Amul Dairy: Camel Milk Launch in India has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Camel Amul to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Camel Amul is one of the most innovative firm in sector. Manager in Amul Dairy: Camel Milk Launch in India Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Amul Dairy: Camel Milk Launch in India | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Amul Dairy: Camel Milk Launch in India are -
Interest costs
– Compare to the competition, Camel Amul 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Sandeep Puri, Brij Mohan Taneja, Pratibha Gupta, Anirudh Menon suggests that, Camel Amul 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.
Aligning sales with marketing
– It come across in the case study Amul Dairy: Camel Milk Launch in India 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 Amul Dairy: Camel Milk Launch in India can leverage the sales team experience to cultivate customer relationships as Camel Amul is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Amul Dairy: Camel Milk Launch in India HBR case study mentions - Camel Amul 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.
Increasing silos among functional specialists
– The organizational structure of Camel Amul is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Camel Amul needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Camel Amul to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Amul Dairy: Camel Milk Launch in India 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 Camel Amul has relatively successful track record of launching new products.
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 Camel Amul supply chain. Even after few cautionary changes mentioned in the HBR case study - Amul Dairy: Camel Milk Launch in India, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Camel Amul vulnerable to further global disruptions in South East Asia.
Lack of clear differentiation of Camel Amul products
– To increase the profitability and margins on the products, Camel Amul needs to provide more differentiated products than what it is currently offering in the marketplace.
No frontier risks strategy
– After analyzing the HBR case study Amul Dairy: Camel Milk Launch in India, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People 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 Amul Dairy: Camel Milk Launch in India, is just above the industry average. Camel Amul 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Camel Amul is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Amul Dairy: Camel Milk Launch in India can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Amul Dairy: Camel Milk Launch in India | 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 Amul Dairy: Camel Milk Launch in India are -
Learning at scale
– Online learning technologies has now opened space for Camel Amul to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Camel Amul 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. Camel Amul 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.
Using analytics as competitive advantage
– Camel Amul 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 Amul Dairy: Camel Milk Launch in India - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Camel Amul to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Camel Amul can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Camel Amul to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Loyalty marketing
– Camel Amul 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.
Creating value in data economy
– The success of analytics program of Camel Amul has opened avenues for new revenue streams for the organization in the industry. This can help Camel Amul to build a more holistic ecosystem as suggested in the Amul Dairy: Camel Milk Launch in India case study. Camel Amul 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 Camel Amul 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.
Developing new processes and practices
– Camel Amul 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.
Manufacturing automation
– Camel Amul can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Camel Amul 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, Amul Dairy: Camel Milk Launch in India, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Camel Amul 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 Camel Amul to hire the very best people irrespective of their geographical location.
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 Camel Amul in the consumer business. Now Camel Amul can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Amul Dairy: Camel Milk Launch in India External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Amul Dairy: Camel Milk Launch in India are -
Technology acceleration in Forth Industrial Revolution
– Camel Amul has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Camel Amul needs to keep up with the evolution of technology in the Leadership & Managing People 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.
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 Camel Amul business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Camel Amul 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. Camel Amul can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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. Camel Amul 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.
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 Camel Amul.
Regulatory challenges
– Camel Amul 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 Leadership & Managing People industry regulations.
Stagnating economy with rate increase
– Camel Amul 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. Camel Amul 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Camel Amul 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.
Consumer confidence and its impact on Camel Amul 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 Camel Amul 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
– Camel Amul 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.
Weighted SWOT Analysis of Amul Dairy: Camel Milk Launch in India 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 Amul Dairy: Camel Milk Launch in India 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 Amul Dairy: Camel Milk Launch in India 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 Amul Dairy: Camel Milk Launch in India 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 Amul Dairy: Camel Milk Launch in India 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 Camel Amul needs to make to build a sustainable competitive advantage.