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 – increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, increasing energy prices, talent flight as more people leaving formal jobs, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy,
there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, 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.
Ability to recruit top talent
– Massimo Zanetti Beverage Group SpA is one of the leading players in the Food Processing industry in Italy. It is in a position to attract the best talent available in Italy. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy of Massimo Zanetti Beverage Group SpA 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.
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.
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.
Training and development
– Massimo Zanetti Beverage Group SpA has one of the best training and development program in Consumer/Non-Cyclical industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
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.
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.
Diverse revenue streams
– Massimo Zanetti Beverage Group SpA is present in almost all the verticals within the Food Processing industry. This has provided Massimo Zanetti Beverage Group SpA 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.
Effective Research and Development (R&D)
– Massimo Zanetti Beverage Group SpA has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Massimo Zanetti Beverage Group SpA 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.
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 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.
Products dominated business model
– Even though Massimo Zanetti Beverage Group SpA 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. Massimo Zanetti Beverage Group SpA should strive to include more intangible value offerings along with its core products and services.
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.
Increasing silos among functional specialists
– The organizational structure of Massimo Zanetti Beverage Group SpA is dominated by functional specialists. It is not different from other players in the Food Processing industry, but Massimo Zanetti Beverage Group SpA needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Massimo Zanetti Beverage Group SpA to focus more on services in the Food Processing industry rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Italy, Massimo Zanetti Beverage Group SpA needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 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.
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 Massimo Zanetti Beverage Group SpA supply chain. Even after few cautionary changes, Massimo Zanetti Beverage Group SpA is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Massimo Zanetti Beverage Group SpA vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– From the 10K / annual statement of Massimo Zanetti Beverage Group SpA, it seems that company is thinking out the frontier risks that can impact Food Processing industry. 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.
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.
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 -
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.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Massimo Zanetti Beverage Group SpA 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 Massimo Zanetti Beverage Group SpA to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Massimo Zanetti Beverage Group SpA is facing challenges because of the dominance of functional experts in the organization. Massimo Zanetti Beverage Group SpA can utilize new technology in the field of Food Processing industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
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.
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 Massimo Zanetti Beverage Group SpA in the Food Processing industry. Now Massimo Zanetti Beverage Group SpA can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Massimo Zanetti Beverage Group SpA 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.
Developing new processes and practices
– Massimo Zanetti Beverage Group SpA 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.
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.
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.
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.
Learning at scale
– Online learning technologies has now opened space for Massimo Zanetti Beverage Group SpA 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.
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 -
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.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
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.
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.
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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Massimo Zanetti Beverage Group SpA 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 Massimo Zanetti Beverage Group SpA prominent markets.
Stagnating economy with rate increase
– Massimo Zanetti Beverage Group SpA 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.
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.
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.
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.
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.
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. Massimo Zanetti Beverage Group SpA 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.
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.