Swot Analysis of "Krave's Candy Co.--Clodhoppers (B)" written by Stewart Thornhill, Chris Sturby includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Clodhoppers Krave's facing as an external strategic factors. Some of the topics covered in Krave's Candy Co.--Clodhoppers (B) case study are - Strategic Management Strategies, Entrepreneurial finance, Growth strategy and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Krave's Candy Co.--Clodhoppers (B) casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices, increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, central banks are concerned over increasing inflation, supply chains are disrupted by pandemic ,
challanges to central banks by blockchain based private currencies, geopolitical disruptions, etc
Introduction to SWOT Analysis of Krave's Candy Co.--Clodhoppers (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Krave's Candy Co.--Clodhoppers (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Clodhoppers Krave's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Clodhoppers Krave's 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 Krave's Candy Co.--Clodhoppers (B) can be done for the following purposes –
1. Strategic planning using facts provided in Krave's Candy Co.--Clodhoppers (B) case study
2. Improving business portfolio management of Clodhoppers Krave's
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Clodhoppers Krave's
Strengths Krave's Candy Co.--Clodhoppers (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Clodhoppers Krave's in Krave's Candy Co.--Clodhoppers (B) Harvard Business Review case study are -
Diverse revenue streams
– Clodhoppers Krave's is present in almost all the verticals within the industry. This has provided firm in Krave's Candy Co.--Clodhoppers (B) 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.
Low bargaining power of suppliers
– Suppliers of Clodhoppers Krave's in the sector have low bargaining power. Krave's Candy Co.--Clodhoppers (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Clodhoppers Krave's to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management
– Clodhoppers Krave's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Successful track record of launching new products
– Clodhoppers Krave's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Clodhoppers Krave's 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.
Operational resilience
– The operational resilience strategy in the Krave's Candy Co.--Clodhoppers (B) 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 Finance & Accounting industry
– Krave's Candy Co.--Clodhoppers (B) firm has clearly differentiated products in the market place. This has enabled Clodhoppers Krave's to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Clodhoppers Krave's to invest into research and development (R&D) and innovation.
Analytics focus
– Clodhoppers Krave's 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 Stewart Thornhill, Chris Sturby 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.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Clodhoppers Krave's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Clodhoppers Krave's 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.
Training and development
– Clodhoppers Krave's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Krave's Candy Co.--Clodhoppers (B) 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.
High switching costs
– The high switching costs that Clodhoppers Krave's 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.
Ability to lead change in Finance & Accounting field
– Clodhoppers Krave's 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 Clodhoppers Krave's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Clodhoppers Krave's is one of the leading recruiters in the industry. Managers in the Krave's Candy Co.--Clodhoppers (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Krave's Candy Co.--Clodhoppers (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Krave's Candy Co.--Clodhoppers (B) are -
Products dominated business model
– Even though Clodhoppers Krave's 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 - Krave's Candy Co.--Clodhoppers (B) should strive to include more intangible value offerings along with its core products and services.
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 Clodhoppers Krave's supply chain. Even after few cautionary changes mentioned in the HBR case study - Krave's Candy Co.--Clodhoppers (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Clodhoppers Krave's 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 Krave's Candy Co.--Clodhoppers (B), in the dynamic environment Clodhoppers Krave's has struggled to respond to the nimble upstart competition. Clodhoppers Krave's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Krave's Candy Co.--Clodhoppers (B), is just above the industry average. Clodhoppers Krave's 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, Clodhoppers Krave's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Krave's Candy Co.--Clodhoppers (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, firm in the HBR case study Krave's Candy Co.--Clodhoppers (B) 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 Clodhoppers Krave's 's lucrative customers.
High cash cycle compare to competitors
Clodhoppers Krave's has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Skills based hiring
– The stress on hiring functional specialists at Clodhoppers Krave's has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Increasing silos among functional specialists
– The organizational structure of Clodhoppers Krave's is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Clodhoppers Krave's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Clodhoppers Krave's 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 Krave's Candy Co.--Clodhoppers (B) 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 Clodhoppers Krave's has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Clodhoppers Krave's 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.
Opportunities Krave's Candy Co.--Clodhoppers (B) | 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 Krave's Candy Co.--Clodhoppers (B) are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Clodhoppers Krave's is facing challenges because of the dominance of functional experts in the organization. Krave's Candy Co.--Clodhoppers (B) 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.
Creating value in data economy
– The success of analytics program of Clodhoppers Krave's has opened avenues for new revenue streams for the organization in the industry. This can help Clodhoppers Krave's to build a more holistic ecosystem as suggested in the Krave's Candy Co.--Clodhoppers (B) case study. Clodhoppers Krave's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Clodhoppers Krave's 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Clodhoppers Krave's can use these opportunities to build new business models that can help the communities that Clodhoppers Krave's operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Building a culture of innovation
– managers at Clodhoppers Krave's 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 Finance & Accounting segment.
Low interest rates
– Even though inflation is raising its head in most developed economies, Clodhoppers Krave's 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.
Better consumer reach
– The expansion of the 5G network will help Clodhoppers Krave's to increase its market reach. Clodhoppers Krave's 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Clodhoppers Krave's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Clodhoppers Krave's can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting 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.
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 Clodhoppers Krave's in the consumer business. Now Clodhoppers Krave's can target international markets with far fewer capital restrictions requirements than the existing system.
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. Clodhoppers Krave's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Clodhoppers Krave's 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.
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 Clodhoppers Krave's 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.
Threats Krave's Candy Co.--Clodhoppers (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Krave's Candy Co.--Clodhoppers (B) are -
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 Clodhoppers Krave's in the Finance & Accounting sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Krave's Candy Co.--Clodhoppers (B), Clodhoppers Krave's may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
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 Clodhoppers Krave's business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Clodhoppers Krave's 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 Krave's Candy Co.--Clodhoppers (B) .
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.
Regulatory challenges
– Clodhoppers Krave's 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 Finance & Accounting industry regulations.
Environmental challenges
– Clodhoppers Krave's 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. Clodhoppers Krave's can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
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. Clodhoppers Krave's needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Increasing wage structure of Clodhoppers Krave's
– 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 Clodhoppers Krave's.
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 Clodhoppers Krave's.
Stagnating economy with rate increase
– Clodhoppers Krave's 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Clodhoppers Krave's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Weighted SWOT Analysis of Krave's Candy Co.--Clodhoppers (B) 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 Krave's Candy Co.--Clodhoppers (B) 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 Krave's Candy Co.--Clodhoppers (B) 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 Krave's Candy Co.--Clodhoppers (B) 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 Krave's Candy Co.--Clodhoppers (B) 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 Clodhoppers Krave's needs to make to build a sustainable competitive advantage.
