Massimo Zanetti Beverage Group SpA (MZB) SWOT Analysis / TOWS Matrix / MBA Resources
Food Processing
Strategy / MBA Resources
Introduction to SWOT Analysis
SWOT Analysis / TOWS Matrix for Massimo Zanetti Beverage Group SpA (Italy)
Based on various researches at Oak Spring University , Massimo Zanetti Beverage Group SpA is operating in a macro-environment that has been destablized by – technology disruption, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, supply chains are disrupted by pandemic , wage bills are increasing, there is backlash against globalization,
cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Massimo Zanetti Beverage Group SpA
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Massimo Zanetti Beverage Group SpA can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Massimo Zanetti Beverage Group SpA, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Massimo Zanetti Beverage Group SpA 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 Massimo Zanetti Beverage Group SpA can be done for the following purposes –
1. Strategic planning of Massimo Zanetti Beverage Group SpA
2. Improving business portfolio management of Massimo Zanetti Beverage Group SpA
3. Assessing feasibility of the new initiative in Italy
4. Making a Food Processing sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Massimo Zanetti Beverage Group SpA
Strengths of Massimo Zanetti Beverage Group SpA | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Massimo Zanetti Beverage Group SpA are -
High switching costs
– The high switching costs that Massimo Zanetti Beverage Group SpA 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.
Highly skilled collaborators
– Massimo Zanetti Beverage Group SpA has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive Food Processing industry. Secondly the value chain collaborators of Massimo Zanetti Beverage Group SpA have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Massimo Zanetti Beverage Group SpA 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 Massimo Zanetti Beverage Group SpA is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Massimo Zanetti Beverage Group SpA emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Massimo Zanetti Beverage Group SpA has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Massimo Zanetti Beverage Group SpA 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.
Sustainable margins compare to other players in Food Processing industry
– Massimo Zanetti Beverage Group SpA has clearly differentiated products in the market place. This has enabled Massimo Zanetti Beverage Group SpA to fetch slight price premium compare to the competitors in the Food Processing industry. The sustainable margins have also helped Massimo Zanetti Beverage Group SpA to invest into research and development (R&D) and innovation.
High brand equity
– Massimo Zanetti Beverage Group SpA has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Massimo Zanetti Beverage Group SpA to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management in the Food Processing industry
– Massimo Zanetti Beverage Group SpA is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Massimo Zanetti Beverage Group SpA in the Consumer/Non-Cyclical sector have low bargaining power. Massimo Zanetti Beverage Group SpA has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Massimo Zanetti Beverage Group SpA to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Massimo Zanetti Beverage Group SpA 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 Massimo Zanetti Beverage Group SpA in Food Processing industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Massimo Zanetti Beverage Group SpA is one of the most innovative firm in Food Processing sector.
Ability to lead change in Food Processing
– Massimo Zanetti Beverage Group SpA is one of the leading players in the Food Processing industry in Italy. Over the years it has not only transformed the business landscape in the Food Processing industry in Italy but also across the existing markets. The ability to lead change has enabled Massimo Zanetti Beverage Group SpA in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses of Massimo Zanetti Beverage Group SpA | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Massimo Zanetti Beverage Group SpA are -
High cash cycle compare to competitors
Massimo Zanetti Beverage Group SpA 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.
Interest costs
– Compare to the competition, Massimo Zanetti Beverage Group SpA 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.
Aligning sales with marketing
– From the outside it seems that Massimo Zanetti Beverage Group SpA 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 Massimo Zanetti Beverage Group SpA can leverage the sales team experience to cultivate customer relationships as Massimo Zanetti Beverage Group SpA 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, Massimo Zanetti Beverage Group SpA is slow explore the new channels of communication. These new channels of communication can help Massimo Zanetti Beverage Group SpA to provide better information regarding Food Processing products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Massimo Zanetti Beverage Group SpA products
– To increase the profitability and margins on the products, Massimo Zanetti Beverage Group SpA needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, Massimo Zanetti Beverage Group SpA 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 Massimo Zanetti Beverage Group SpA lucrative customers.
Compensation and incentives
– The revenue per employee of Massimo Zanetti Beverage Group SpA is just above the Food Processing industry average. It 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 bargaining power of channel partners in Food Processing industry
– because of the regulatory requirements in Italy, Massimo Zanetti Beverage Group SpA 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.
Capital Spending Reduction
– Even during the low interest decade, Massimo Zanetti Beverage Group SpA 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.
Slow to strategic competitive environment developments
– As Massimo Zanetti Beverage Group SpA 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.
Need for greater diversity
– Massimo Zanetti Beverage Group SpA 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.
Massimo Zanetti Beverage Group SpA Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Massimo Zanetti Beverage Group SpA are -
Manufacturing automation
– Massimo Zanetti Beverage Group SpA 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.
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. Massimo Zanetti Beverage Group SpA can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Massimo Zanetti Beverage Group SpA 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. Massimo Zanetti Beverage Group SpA 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Massimo Zanetti Beverage Group SpA 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.
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 Massimo Zanetti Beverage Group SpA 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Massimo Zanetti Beverage Group SpA 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 Massimo Zanetti Beverage Group SpA to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Massimo Zanetti Beverage Group SpA 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 Massimo Zanetti Beverage Group SpA to build a competitive advantage using analytics. The analytics driven competitive advantage can help Massimo Zanetti Beverage Group SpA to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Massimo Zanetti Beverage Group SpA 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Massimo Zanetti Beverage Group SpA can use these opportunities to build new business models that can help the communities that Massimo Zanetti Beverage Group SpA operates in. Secondly it can use opportunities from government spending in Food Processing sector.
Buying journey improvements
– Massimo Zanetti Beverage Group SpA 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.
Creating value in data economy
– The success of analytics program of Massimo Zanetti Beverage Group SpA has opened avenues for new revenue streams for the organization in Food Processing industry. This can help Massimo Zanetti Beverage Group SpA to build a more holistic ecosystem for Massimo Zanetti Beverage Group SpA products in the Food Processing industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Massimo Zanetti Beverage Group SpA 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 Food Processing industry.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Massimo Zanetti Beverage Group SpA can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Massimo Zanetti Beverage Group SpA External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Massimo Zanetti Beverage Group SpA are -
Shortening product life cycle
– it is one of the major threat that Massimo Zanetti Beverage Group SpA is facing in Food Processing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Massimo Zanetti Beverage Group SpA business can come under increasing regulations regarding data privacy, data security, etc.
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. Massimo Zanetti Beverage Group SpA 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 Massimo Zanetti Beverage Group SpA 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Food Processing industry are lowering. It can presents Massimo Zanetti Beverage Group SpA with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Food Processing sector.
High dependence on third party suppliers
– Massimo Zanetti Beverage Group SpA 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.
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 Massimo Zanetti Beverage Group SpA in the Food Processing sector and impact the bottomline of the organization.
Regulatory challenges
– Massimo Zanetti Beverage Group SpA 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.
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.
Technology acceleration in Forth Industrial Revolution
– Massimo Zanetti Beverage Group SpA has witnessed rapid integration of technology during Covid-19 in the Food Processing industry. As one of the leading players in the industry, Massimo Zanetti Beverage Group SpA 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.
Environmental challenges
– Massimo Zanetti Beverage Group SpA 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. Massimo Zanetti Beverage Group SpA can take advantage of this fund but it will also bring new competitors in the Food Processing industry.
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. Massimo Zanetti Beverage Group SpA needs to understand the core reasons impacting the Food Processing industry. This will help it in building a better workplace.
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 Massimo Zanetti Beverage Group SpA.
Weighted SWOT Analysis of Massimo Zanetti Beverage Group SpA Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Massimo Zanetti Beverage Group SpA 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 Massimo Zanetti Beverage Group SpA 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 Massimo Zanetti Beverage Group SpA 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 Massimo Zanetti Beverage Group SpA 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 Massimo Zanetti Beverage Group SpA needs to make to build a sustainable competitive advantage.
