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 – central banks are concerned over increasing inflation, increasing transportation and logistics costs, talent flight as more people leaving formal jobs, increasing energy prices, supply chains are disrupted by pandemic , technology disruption, increasing household debt because of falling income levels,
increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, 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 -
Innovation driven organization
– United Nilgiri Tea Estates Co is one of the most innovative firm in Food Processing sector.
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 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.
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.
Learning organization
- United Nilgiri Tea Estates Co 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 United Nilgiri Tea Estates Co is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at United Nilgiri Tea Estates Co emphasize – knowledge, initiative, and innovation.
Digital Transformation in Food Processing industry
- digital transformation varies from industry to industry. For United Nilgiri Tea Estates Co digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. United Nilgiri Tea Estates Co 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 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.
Analytics focus
– United Nilgiri Tea Estates Co 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 Food Processing industry. The technology infrastructure of India is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
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.
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.
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.
Organizational Resilience of United Nilgiri Tea Estates Co
– The covid-19 pandemic has put organizational resilience at the centre of everthing United Nilgiri Tea Estates Co does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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 -
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.
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.
Need for greater diversity
– United Nilgiri Tea Estates Co 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, United Nilgiri Tea Estates Co is slow explore the new channels of communication. These new channels of communication can help United Nilgiri Tea Estates Co to provide better information regarding Food Processing products and services. It can also build an online community to further reach out to potential customers.
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.
Slow to strategic competitive environment developments
– As United Nilgiri Tea Estates Co is one of the leading players in the Food Processing industry, it takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the Food Processing industry in last five years.
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.
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.
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 United Nilgiri Tea Estates Co supply chain. Even after few cautionary changes, United Nilgiri Tea Estates Co is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left United Nilgiri Tea Estates Co vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of India, United Nilgiri Tea Estates Co needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
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 -
Lowering marketing communication costs
– 5G expansion will open new opportunities for United Nilgiri Tea Estates Co in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Food Processing industry, and it will provide faster access to the consumers.
Loyalty marketing
– United Nilgiri Tea Estates Co has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
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.
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.
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.
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.
Buying journey improvements
– United Nilgiri Tea Estates Co can improve the customer journey of consumers in the Food Processing industry by using analytics and artificial intelligence. It 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.
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 United Nilgiri Tea Estates Co 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.
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.
Manufacturing automation
– United Nilgiri Tea Estates Co can use the latest technology developments to improve its manufacturing and designing process in Food Processing sector. 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.
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.
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.
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 -
Consumer confidence and its impact on United Nilgiri Tea Estates Co 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 Food Processing industry and other sectors.
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.
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 United Nilgiri Tea Estates Co business can come under increasing regulations regarding data privacy, data security, 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.
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 United Nilgiri Tea Estates Co.
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.
Stagnating economy with rate increase
– United Nilgiri Tea Estates Co 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 Food Processing industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Food Processing industry are lowering. It can presents United Nilgiri Tea Estates Co with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Food Processing sector.
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.
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.
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.
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.
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.
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.
