Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid
Most consumers who comprise "the bottom of the pyramid" reside in hundreds of thousands of villages located beyond most multinationals' distribution networks. Their access to essential goods is limited not just by high prices, but also by inadequate rural distribution, which also restricts the ability of poor producers to distribute their products. The term "socially responsible distribution" describes initiatives that provide poor producers and consumers with market access for goods and services that they can benefit from by either buying or selling, thus neutralizing the disadvantages they suffer due to inadequate physical links to markets, information asymmetries, and weak bargaining power. This article identifies how socially responsible distribution can be achieved by strategies that reduce costs, reinvent the distribution channel, or incorporate a long-term approach to investment. It offers guidelines for setting up distribution channels that integrate the rural bottom of the pyramid and identifies the payoffs from adopting them.
Swot Analysis of "Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid" written by Sushil Vachani, N. Craig Smith includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Distribution Pyramid facing as an external strategic factors. Some of the topics covered in Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid case study are - Strategic Management Strategies, Emerging markets, Marketing, Social responsibility, Supply chain and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid casestudy better are - – increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing, technology disruption, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs,
cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Distribution Pyramid, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Distribution Pyramid 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 Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid can be done for the following purposes –
1. Strategic planning using facts provided in Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid case study
2. Improving business portfolio management of Distribution Pyramid
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 Distribution Pyramid
Strengths Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Distribution Pyramid in Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid 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.
Organizational Resilience of Distribution Pyramid
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Distribution Pyramid does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Distribution Pyramid is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Distribution Pyramid is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Distribution Pyramid 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 Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Leadership & Managing People field
– Distribution Pyramid 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 Distribution Pyramid in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Distribution Pyramid 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 Distribution Pyramid 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid firm has clearly differentiated products in the market place. This has enabled Distribution Pyramid to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Distribution Pyramid to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Distribution Pyramid in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Distribution Pyramid 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 Sushil Vachani, N. Craig Smith 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.
Successful track record of launching new products
– Distribution Pyramid has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Distribution Pyramid 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.
Ability to recruit top talent
– Distribution Pyramid is one of the leading recruiters in the industry. Managers in the Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid 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 Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid are -
Capital Spending Reduction
– Even during the low interest decade, Distribution Pyramid 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid 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 Distribution Pyramid has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid, is just above the industry average. Distribution Pyramid 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Distribution Pyramid 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 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 Distribution Pyramid supply chain. Even after few cautionary changes mentioned in the HBR case study - Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Distribution Pyramid vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid 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 Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid can leverage the sales team experience to cultivate customer relationships as Distribution Pyramid is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Distribution Pyramid is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Distribution Pyramid has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Increasing silos among functional specialists
– The organizational structure of Distribution Pyramid is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Distribution Pyramid needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Distribution Pyramid to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid, 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.
Interest costs
– Compare to the competition, Distribution Pyramid 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 Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid | 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 Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Distribution Pyramid 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Distribution Pyramid 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 Distribution Pyramid to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Distribution Pyramid 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.
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. Distribution Pyramid 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. Distribution Pyramid 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Distribution Pyramid is facing challenges because of the dominance of functional experts in the organization. Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid 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.
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. Distribution Pyramid can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Distribution Pyramid 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.
Better consumer reach
– The expansion of the 5G network will help Distribution Pyramid to increase its market reach. Distribution Pyramid 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 Distribution Pyramid can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Distribution Pyramid 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.
Creating value in data economy
– The success of analytics program of Distribution Pyramid has opened avenues for new revenue streams for the organization in the industry. This can help Distribution Pyramid to build a more holistic ecosystem as suggested in the Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid case study. Distribution Pyramid can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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. Distribution Pyramid can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Distribution Pyramid 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 Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid are -
Technology acceleration in Forth Industrial Revolution
– Distribution Pyramid has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Distribution Pyramid 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.
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 Distribution Pyramid in the Leadership & Managing People sector and impact the bottomline of the organization.
Consumer confidence and its impact on Distribution Pyramid 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
– Distribution Pyramid 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.
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. Distribution Pyramid can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Distribution Pyramid is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Distribution Pyramid 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.
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. Distribution Pyramid 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.
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. Distribution Pyramid needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid, Distribution Pyramid 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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Distribution Pyramid with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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 Distribution Pyramid business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid 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 Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid 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 Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid 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 Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid 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 Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid 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 Distribution Pyramid needs to make to build a sustainable competitive advantage.
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