Swot Analysis of "Krave's Candy Co.--Clodhoppers (C)" 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 (C) 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 (C) casestudy better are - – central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, technology disruption,
increasing transportation and logistics costs, increasing energy prices, etc
Introduction to SWOT Analysis of Krave's Candy Co.--Clodhoppers (C)
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 (C) 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 (C) can be done for the following purposes –
1. Strategic planning using facts provided in Krave's Candy Co.--Clodhoppers (C) 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 (C) | 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 (C) Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Clodhoppers Krave's in the sector have low bargaining power. Krave's Candy Co.--Clodhoppers (C) 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.
Innovation driven organization
– Clodhoppers Krave's is one of the most innovative firm in sector. Manager in Krave's Candy Co.--Clodhoppers (C) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
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.
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.
High brand equity
– Clodhoppers Krave's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Clodhoppers Krave's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
Organizational Resilience of Clodhoppers Krave's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Clodhoppers Krave's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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 (C) 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 Finance & Accounting industry
– Krave's Candy Co.--Clodhoppers (C) 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.
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.
Effective Research and Development (R&D)
– Clodhoppers Krave's 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 Krave's Candy Co.--Clodhoppers (C) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Krave's Candy Co.--Clodhoppers (C) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Krave's Candy Co.--Clodhoppers (C) 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 (C) should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Krave's Candy Co.--Clodhoppers (C), 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.
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.
Capital Spending Reduction
– Even during the low interest decade, Clodhoppers Krave's 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.
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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Krave's Candy Co.--Clodhoppers (C), it seems that the employees of Clodhoppers Krave's 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Krave's Candy Co.--Clodhoppers (C), 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Krave's Candy Co.--Clodhoppers (C) 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.
Lack of clear differentiation of Clodhoppers Krave's products
– To increase the profitability and margins on the products, Clodhoppers Krave's needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Clodhoppers Krave's 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.
Aligning sales with marketing
– It come across in the case study Krave's Candy Co.--Clodhoppers (C) 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 Krave's Candy Co.--Clodhoppers (C) can leverage the sales team experience to cultivate customer relationships as Clodhoppers Krave's is planning to shift buying processes online.
Opportunities Krave's Candy Co.--Clodhoppers (C) | 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 (C) are -
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.
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.
Developing new processes and practices
– Clodhoppers Krave's can develop new processes and procedures in Finance & Accounting 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.
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.
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 (C) 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.
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 (C) 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.
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.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Clodhoppers Krave's 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, Krave's Candy Co.--Clodhoppers (C), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Clodhoppers Krave's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Krave's Candy Co.--Clodhoppers (C) 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.
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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Clodhoppers Krave's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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.
Threats Krave's Candy Co.--Clodhoppers (C) 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 (C) 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 Krave's Candy Co.--Clodhoppers (C), 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 .
Technology acceleration in Forth Industrial Revolution
– Clodhoppers Krave's has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Clodhoppers Krave's needs to keep up with the evolution of technology in the Finance & Accounting 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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Clodhoppers Krave's in the Finance & Accounting industry. The Finance & Accounting 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.
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.
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 (C) .
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.
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.
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.
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.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Clodhoppers Krave's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Clodhoppers Krave's 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 Krave's Candy Co.--Clodhoppers (C) 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 (C) 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 (C) 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 (C) 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 (C) 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.