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 - – digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, wage bills are increasing, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions,
technology disruption, central banks are concerned over increasing inflation, 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 -
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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Distribution Pyramid digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Distribution Pyramid 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.
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.
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.
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.
High brand equity
– Distribution Pyramid has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Distribution Pyramid to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
Innovation driven organization
– Distribution Pyramid is one of the most innovative firm in sector. Manager in Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Distribution Pyramid has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid 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.
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.
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.
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.
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 -
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.
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.
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.
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.
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.
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.
Products dominated business model
– Even though Distribution Pyramid 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 - Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, Sushil Vachani, N. Craig Smith suggests that, Distribution Pyramid 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.
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.
Low market penetration in new markets
– Outside its home market of Distribution Pyramid, firm in the HBR case study Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
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 -
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.
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 Distribution Pyramid 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.
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.
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.
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.
Building a culture of innovation
– managers at Distribution Pyramid can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Leadership & Managing People segment.
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.
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.
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.
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.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Distribution Pyramid 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, Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Distribution Pyramid can use these opportunities to build new business models that can help the communities that Distribution Pyramid operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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 -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Distribution Pyramid 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 Socially Responsible Distribution: Strategies for Reaching the Bottom of the Pyramid .
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.
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 .
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.
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 Distribution Pyramid.
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.
Regulatory challenges
– Distribution Pyramid 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.
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.
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.
Environmental challenges
– Distribution Pyramid 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. Distribution Pyramid can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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.
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.
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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