At EMBA PRO , we specialize at analyzing & providing comprehensive, corporate SWOT Analysis of Planned Parenthood Federation of America (C) case study. Planned Parenthood Federation of America (C) "referred as Parenthood Reinvention in this analysis " is a Harvard Business Review (HBR) case study used for MBA & EMBA programs. It is written by V. Kasturi Rangan, Elaine V. Backman and deals with topics in areas such as Sales & Marketing Marketing
SWOT Analysis stands for – Strengths, Weaknesses, Opportunities, and Threats that Parenthood Reinvention encounters both internally and in macro environment that it operates in. Strengths and Weaknesses are often restricted to company’s internal - resources, skills and limitations.
Opportunities and Threats are factors that are analyzed in view of the prevalent market forces and other factors such as economic , social, health & safety, technological, political, and legal & environmental.
According to global executive survey done by Harvard Business Review & Brightline Initiative – Only 20% of the strategic targets set by organizations are realized. Rest 80% of the strategic targets are not achieved because of incomprehensive planning, limited resource allocation, and poor execution.
The successful organizations such as Parenthood Reinvention are the one who able to predict market trends better than others, provide resources to develop products and services to leverage those trends, able to counter competitors’ threats, and meet customers’ expected value proposition.
Describes the series of events and processes that led to the formulation of a reinvention plan.
The four key elements of SWOT analysis are - Strengths, Weaknesses, Opportunities & Threats. Parenthood Reinvention can use strengths to create niche positioning in the market, can strive to reduce & remove weaknesses so that it can better compete with competitors, look out to leverage opportunities provided by industry structure, regulations and other development in external environment, and finally make provisions and develop strategies to mitigate threats that can undermine the business model of Parenthood Reinvention.
Using Parenthood Reinvention strengths to consolidate and expand the market position.
Parenthood Reinvention can use two approaches - building on present strengths, or analyze the trend and build processes to two pronged market penetration approach.
Building strategies based on consumer oriented product development and marketing approach.
Parenthood Reinvention should just get out of these business areas and focus on strength and threats box , or on weakness and opportunities box.
For more detailed SWOT Matrix strategy please go through the detailed analysis of strengths, weaknesses, opportunities, and threats in next section.
What are Strengths in SWOT Analysis
Strengths are the Parenthood Reinvention capabilities and resources that it can leverage to build a sustainable competitive advantage in the marketplace. Strengths come from positive aspects of five key resources & capabilities - past experiences and successes, physical resources such as land, building, financial resources, human resources, and activities & processes .
- Strong relationship with existing suppliers – As an incumbent in the industry, Parenthood Reinvention has strong relationship with its suppliers and other members of the supply chain. According to V. Kasturi Rangan, Elaine V. Backman , the organization can increase products and services by leveraging the skills of its suppliers and supply chain partners.
- Diverse Product Portfolio of Parenthood Reinvention – The products and brand portfolio of Parenthood Reinvention is enabling it to target various segments in the domestic market at the same time. This has enabled Parenthood Reinvention to build diverse revenue source and profit mix.
- Successful Go To Market Track Record – Parenthood Reinvention has a highly successful track record of both launching new products in the domestic market but also catering to the various market based on the insights from local consumers. According to V. Kasturi Rangan, Elaine V. Backman , Parenthood Reinvention has tested various concepts in different markets and come up with successful Sales & Marketing solutions.
- High Margins – Parenthood Reinvention charges a premium compare to its competitors. According to V. Kasturi Rangan, Elaine V. Backman of Planned Parenthood Federation of America (C) case study, this has provided Parenthood Reinvention resources to not only thwart competitive pressures but also to invest into research and development.
- Intellectual Property Rights – Parenthood Reinvention has garnered a wide array of patents and copyrights through innovation and buying those rights from the creators. This can help Parenthood Reinvention in thwarting the challenges of competitors in various industries Marketing.
- Strong Balance Sheet and Financial Statement of Parenthood Reinvention can help it to invest in new and diverse projects that can further diversify the revenue stream and increase Return on Sales (RoS) & other metrics.
- Managing Regulations and Business Environment – Parenthood Reinvention operates in an environment where it faces numerous regulations and government diktats. In Marketing areas, the firm needs to navigate environment by building strong relationship with lobby groups and political network.
What are Weakness in SWOT Analysis
Weaknesses are the areas, capabilities or skills in which Parenthood Reinvention lacks. It limits the ability of the firm to build a sustainable competitive advantage. Weaknesses come from lack or absence of five key resources & capabilities - past experiences and successes, physical resources such as land, building, financial resources, activities & processes, and human resources .
- Inventory Management – Based on the details provided in the Planned Parenthood Federation of America (C) case study, we can conclude that Parenthood Reinvention is not efficiently managing the inventory and cash cycle. According to V. Kasturi Rangan, Elaine V. Backman , there is huge scope of improvement in inventory management.
- Project Management is too focused on internal delivery rather than considering all the interests of external stakeholders. This approach can lead to poor public relation and customer backlash.
- Lack of Work force diversity – I believe that Parenthood Reinvention is not diverse enough given that most of its growth so far is in its domestic market. According to V. Kasturi Rangan, Elaine V. Backman , this can reduce the potential of success of Parenthood Reinvention in the international market.
- Track record on environment consideration is not very encouraging – Parenthood Reinvention track record on environmental issues is not very encouraging. According to V. Kasturi Rangan, Elaine V. Backman , this can lead to consumer backlash as customers are now considering environmental protections as integral to part of doing business.
- Customer Dissatisfaction – Even though the demand for products have not gone down but there is a simmering sense of dissatisfaction among the customers of Parenthood Reinvention . It is reflected on the reviews on various on-line platforms. Parenthood Reinvention should focus on areas where it can improve the customer purchase and post purchase experience.
- Parenthood Reinvention business model can be easily replicated even with the number of patents and copyrights the company possess. The intellectual property rights are very difficult to implement in the industry that Parenthood Reinvention operates in. According to V. Kasturi Rangan, Elaine V. Backman , Intellectual Property Rights are effective in thwarting same size competition but it is difficult to stop start ups disrupting markets at various other levels.
What are Opportunities in SWOT Analysis
Opportunities are macro environment factors and developments that Parenthood Reinvention can leverage either to consolidate existing market position or use them for further expansion. Opportunities can emerge from various factors such as - increase in consumer disposable income, changes in consumer preferences, economic growth, technological innovations, and political developments & policy changes .
- Changing Technology Landscape – Machine learning and Artificial Intelligence boom is transforming the technology landscape that Parenthood Reinvention operates in. According to V. Kasturi Rangan, Elaine V. Backman , Parenthood Reinvention can use these developments in improving efficiencies, lowering costs, and transforming processes.
- Opportunities in Adjacent Markets – Parenthood Reinvention can explore adjacent industries Marketing to further market growth especially by extending the features of present products and services.
- Increase in Consumer Disposable Income – Parenthood Reinvention can use the increasing disposable income to build a new business model where customers start paying progressively for using its products. According to V. Kasturi Rangan, Elaine V. Backman of Planned Parenthood Federation of America (C) case study, Parenthood Reinvention can use this trend to expand in adjacent areas Marketing.
- Lucrative Opportunities in International Markets – Globalization has led to opportunities in the international market. Parenthood Reinvention is in prime position to tap on those opportunities and grow the market share. According to V. Kasturi Rangan, Elaine V. Backman , growth in international market can also help Parenthood Reinvention to diversify the risk as it will be less dependent on the domestic market for revenue.
- Growing Market Size and Evolving Preferences of Consumers – Over the last decade and half the market size has grown at brisk pace. The influx of new customers has also led to evolution of consumer preferences and tastes. This presents Parenthood Reinvention two big challenges – how to maintain loyal customers and how to cater to the new customers. Parenthood Reinvention has tried to diversify first using different brands and then by adding various features based on customer preferences.
- Access to International Talent in Global Market – One of the challenges Parenthood Reinvention facing right now is limited access to high level talent market because of limited budget. Expansion into international market can help Parenthood Reinvention to tap into international talent market. According to V. Kasturi Rangan, Elaine V. Backman , it can also help in bringing the talent into domestic market and expanding into new areas Marketing.
What are Threats in SWOT Analysis
Threats are macro environment factors and developments that can derail business model of Parenthood Reinvention. Threats can emerge from various factors such as - technological innovations, political developments & policy changes, increase in consumer disposable income, economic growth, and changes in consumer preferences .
- International Geo-Political Factors – Since the Trump election, geo-political factors have taken a turn for growing protectionism. Developments such as Brexit, Russian sanctions, foreign exchange crisis & inflation in Venezuela, lower oil prices etc are impacting international business environment. Parenthood Reinvention should closely focus on these events and make them integral to strategy making.
- Squeezing Middle Class in Developed and Developing World – The growing inequality is one of the biggest threat to not only globalization but also to capitalism. Parenthood Reinvention first hand witnessed the impact of it where it has seen lower demand of its products from middle class customers in US and EU market.
- Growing Protectionism - Parenthood Reinvention should hedge the risk against growing protectionism ranging from – storing data into international market to diversifying risk by operating into countries at different economic cycle.
- Credit Binge post 2008 Recession – Easy access to credit can be over any time, so Parenthood Reinvention should focus on reducing its dependence on debt to expand. The party has lasted for more than a decade and rollback from Fed can result in huge interest costs for Parenthood Reinvention.
- Increasing bargaining power of buyers – Over the years the bargaining power of customers of Parenthood Reinvention has increased significantly that is putting downward pressure on prices. The company can pursue horizontal integration to consolidate and bring efficiencies but I believe it will be a short term relief. According to V. Kasturi Rangan, Elaine V. Backman , Parenthood Reinvention needs fundamental changes to business model rather than cosmetic changes.
- Threats of New Entrants because of Reducing Costs and Increasing Efficiencies – As Parenthood Reinvention can leverage low cost of reaching customers using social media and e-commerce, so can the competitors – both local and international competitors.