United Nilgiri Tea Estates Co (UNIL) SWOT Analysis / TOWS Matrix / MBA Resources
Food Processing
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for United Nilgiri Tea Estates Co (India)
Based on various researches at Oak Spring University , United Nilgiri Tea Estates Co is operating in a macro-environment that has been destablized by – banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, wage bills are increasing,
increasing household debt because of falling income levels, there is backlash against globalization, etc
Introduction to SWOT Analysis of United Nilgiri Tea Estates Co
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that United Nilgiri Tea Estates Co can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the United Nilgiri Tea Estates Co, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which United Nilgiri Tea Estates Co 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 United Nilgiri Tea Estates Co can be done for the following purposes –
1. Strategic planning of United Nilgiri Tea Estates Co
2. Improving business portfolio management of United Nilgiri Tea Estates Co
3. Assessing feasibility of the new initiative in India
4. Making a Food Processing sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of United Nilgiri Tea Estates Co
Strengths of United Nilgiri Tea Estates Co | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of United Nilgiri Tea Estates Co are -
Successful track record of launching new products
– United Nilgiri Tea Estates Co has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. United Nilgiri Tea Estates Co 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.
Strong track record of project management in the Food Processing industry
– United Nilgiri Tea Estates Co is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– United Nilgiri Tea Estates Co has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – United Nilgiri Tea Estates Co staying ahead in the Food Processing industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High switching costs
– The high switching costs that United Nilgiri Tea Estates Co 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 recruit top talent
– United Nilgiri Tea Estates Co is one of the leading players in the Food Processing industry in India. It is in a position to attract the best talent available in India. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Food Processing industry
– United Nilgiri Tea Estates Co has clearly differentiated products in the market place. This has enabled United Nilgiri Tea Estates Co to fetch slight price premium compare to the competitors in the Food Processing industry. The sustainable margins have also helped United Nilgiri Tea Estates Co to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of United Nilgiri Tea Estates Co in the Consumer/Non-Cyclical sector have low bargaining power. United Nilgiri Tea Estates Co has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps United Nilgiri Tea Estates Co to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– United Nilgiri Tea Estates Co is one of the most innovative firm in Food Processing sector.
Ability to lead change in Food Processing
– United Nilgiri Tea Estates Co is one of the leading players in the Food Processing industry in India. Over the years it has not only transformed the business landscape in the Food Processing industry in India but also across the existing markets. The ability to lead change has enabled United Nilgiri Tea Estates Co in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– United Nilgiri Tea Estates Co has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled United Nilgiri Tea Estates Co to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy of United Nilgiri Tea Estates Co comprises – understanding the underlying the factors in the Food Processing 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.
Diverse revenue streams
– United Nilgiri Tea Estates Co is present in almost all the verticals within the Food Processing industry. This has provided United Nilgiri Tea Estates Co 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.
Weaknesses of United Nilgiri Tea Estates Co | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of United Nilgiri Tea Estates Co are -
Skills based hiring in Food Processing industry
– The stress on hiring functional specialists at United Nilgiri Tea Estates Co 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.
Workers concerns about automation
– As automation is fast increasing in the Food Processing industry, United Nilgiri Tea Estates Co 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 cash cycle compare to competitors
United Nilgiri Tea Estates Co has a high cash cycle compare to other players in the Food Processing industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
High bargaining power of channel partners in Food Processing industry
– because of the regulatory requirements in India, United Nilgiri Tea Estates Co 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 Food Processing industry.
Interest costs
– Compare to the competition, United Nilgiri Tea Estates Co has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
High dependence on United Nilgiri Tea Estates Co ‘s star products
– The top 2 products and services of United Nilgiri Tea Estates Co still accounts for major business revenue. This dependence on star products in Food Processing industry has resulted into insufficient focus on developing new products, even though United Nilgiri Tea Estates Co has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, United Nilgiri Tea Estates Co has high operating costs in the Food Processing industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract United Nilgiri Tea Estates Co lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, United Nilgiri Tea Estates Co 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 Food Processing industry using digital technology.
Aligning sales with marketing
– From the outside it seems that United Nilgiri Tea Estates Co needs to have more collaboration between its sales team and marketing team. Sales professionals in the Food Processing industry have deep experience in developing customer relationships. Marketing department at United Nilgiri Tea Estates Co can leverage the sales team experience to cultivate customer relationships as United Nilgiri Tea Estates Co is planning to shift buying processes online.
Products dominated business model
– Even though United Nilgiri Tea Estates Co has some of the most successful models in the Food Processing industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. United Nilgiri Tea Estates Co should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of United Nilgiri Tea Estates Co products
– To increase the profitability and margins on the products, United Nilgiri Tea Estates Co needs to provide more differentiated products than what it is currently offering in the marketplace.
United Nilgiri Tea Estates Co Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of United Nilgiri Tea Estates Co are -
Learning at scale
– Online learning technologies has now opened space for United Nilgiri Tea Estates Co 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, United Nilgiri Tea Estates Co 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 United Nilgiri Tea Estates Co to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Changes in consumer behavior post Covid-19
– consumer behavior has changed in the Food Processing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. United Nilgiri Tea Estates Co 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. United Nilgiri Tea Estates Co 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.
Leveraging digital technologies
– United Nilgiri Tea Estates Co 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.
Using analytics as competitive advantage
– United Nilgiri Tea Estates Co has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Food Processing sector. This continuous investment in analytics has enabled United Nilgiri Tea Estates Co to build a competitive advantage using analytics. The analytics driven competitive advantage can help United Nilgiri Tea Estates Co to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of United Nilgiri Tea Estates Co has opened avenues for new revenue streams for the organization in Food Processing industry. This can help United Nilgiri Tea Estates Co to build a more holistic ecosystem for United Nilgiri Tea Estates Co products in the Food Processing industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help United Nilgiri Tea Estates Co to increase its market reach. United Nilgiri Tea Estates Co 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 United Nilgiri Tea Estates Co can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Use of Bitcoin and other crypto currencies for transactions in Food Processing industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for United Nilgiri Tea Estates Co in the Food Processing industry. Now United Nilgiri Tea Estates Co can target international markets with far fewer capital restrictions requirements than the existing system.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Food Processing industry, but it has also influenced the consumer preferences. United Nilgiri Tea Estates Co can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– United Nilgiri Tea Estates Co can develop new processes and procedures in Food Processing 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. United Nilgiri Tea Estates Co 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, United Nilgiri Tea Estates Co 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 United Nilgiri Tea Estates Co External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of United Nilgiri Tea Estates Co are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, United Nilgiri Tea Estates Co 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 United Nilgiri Tea Estates Co prominent markets.
Regulatory challenges
– United Nilgiri Tea Estates Co 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 Food Processing industry regulations.
Shortening product life cycle
– it is one of the major threat that United Nilgiri Tea Estates Co is facing in Food Processing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– United Nilgiri Tea Estates Co 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.
Environmental challenges
– United Nilgiri Tea Estates Co 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. United Nilgiri Tea Estates Co can take advantage of this fund but it will also bring new competitors in the Food Processing industry.
Increasing wage structure of United Nilgiri Tea Estates Co
– 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 United Nilgiri Tea Estates Co.
Technology acceleration in Forth Industrial Revolution
– United Nilgiri Tea Estates Co has witnessed rapid integration of technology during Covid-19 in the Food Processing industry. As one of the leading players in the industry, United Nilgiri Tea Estates Co needs to keep up with the evolution of technology in the Food Processing 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for United Nilgiri Tea Estates Co in Food Processing industry. The Food Processing 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.
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 United Nilgiri Tea Estates Co in the Food Processing sector and impact the bottomline of the organization.
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. United Nilgiri Tea Estates Co 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. United Nilgiri Tea Estates Co needs to understand the core reasons impacting the Food Processing 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, United Nilgiri Tea Estates Co may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Food Processing sector.
Easy access to finance
– Easy access to finance in Food Processing industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. United Nilgiri Tea Estates Co can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of United Nilgiri Tea Estates Co Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at United Nilgiri Tea Estates Co 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 United Nilgiri Tea Estates Co 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 United Nilgiri Tea Estates Co 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 United Nilgiri Tea Estates Co 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 United Nilgiri Tea Estates Co needs to make to build a sustainable competitive advantage.