What is SWOT analysis?

What are the major elements of

SWOT analysis?
SWOT Analysis is a strategic methodology to analyze the - Strengths & Weaknesses that Gluten Kellogg's
possess, and Opportunities & Threats that the organization faces because of competitive and macro-
economic factors.

SWOT analysis provides key insights into both internal and external factors that can impact the
performance of an organization. It can help the managers of the organization to optimize performance,
look for new opportunities, manage competition, maximize return on resources employed, and
minimization of various business and policy making risks.

Case Study Overview

Kellogg's is exploring the possibility of launching gluten-free Corn Flakes in India. The company must
examine the gluten-free market in India and explore strategies for entering this market. Kellogg's must
assess its competitors in India's growing breakfast cereal market, where a growing economy and increasing
health awareness is pushing Indian consumers to look for healthier options. Questions remain whether
Kellogg's should enter the promising gluten-free segment to take advantage of this potential opportunity in
India, consumers' evolving preferences and the current industry trends.

Authors :: Sandeep Puri, Mayank Rawat, Arjit Rawal, Akshay Nangia

Category :: Sales & Marketing

Key Words :: Product development

For more information you can check out Case Study Solution Guide of Should Kellogg's Launch Gluten-
Free Products in India?

What should be included in a SWOT analysis of Should Kellogg's Launch Gluten-Free

Products in India??

There are four major elements / components of SWOT analysis - Strengths, Weaknesses, Opportunities,
and Threats. Gluten Kellogg's can divide these four elements into two broad categories - Internal Factors
and External Factors.
 Opportunities Threats
Strengths Strength Opportunities (SO) Strength Threats (ST) Strategies
Strategies
Investing into R&D to thwart Sales &
Leveraging brand recognition in new Marketing industry disruptors.
segments

Weaknesses Weakness Opportunities (WO) Weaknesses Threats (WT) Strategies

Strategies
Get out of the business and focus on growth
Investing into customer oriented services areas
and supply chain

Please email for detail SWOT Matrix based on the Weighted SWOT Analysis of Should Kellogg's
Launch Gluten-Free Products in India?

SWOT Analysis of Should Kellogg's Launch Gluten-Free

Products in India?
STRENGTHS OF SHOULD KELLOGG'S LAUNCH GLUTEN-
FREE PRODUCTS IN INDIA?

WHAT ARE "STRENGTHS" IN SWOT ANALYSIS?

Strengths are the firm's capabilities and resources that it can use to design, develop, and sustain
competitive advantage in the marketplace

- First mover advantage in the increasingly crowded market place. The new products are rapidly
increasing Gluten Kellogg's market share in the Sales & Marketing industry.

- Diverse Revenue models - Over the years Should Kellogg's Launch Gluten-Free Products in India? has
ventured into various businesses outside the Sales & Marketing sector. This has enabled the company do
develop a diversified revenue stream beyond Sales & Marketing sector and Sales & Marketing segment.
- Success of new product mix - Gluten Kellogg's provides exhaustive product mix options to its
customers. It helps the company in catering to various customers segments in the Sales & Marketing
industry.

- Track record of innovation - Even though most players in the Sales & Marketing strive to innovate,
Gluten Kellogg's has successful record at consumer driven innovation.

- High margins compare to Sales & Marketing industry's competitors - Even though Gluten Kellogg's is
facing downward pressure on profitability, compare to competitors it is still racking in higher profit
margins.

- Brands catering to different customers segments within Product development segment - Gluten
Kellogg's extensive product offerings have helped the company to penetrate different customer segments in
Sales & Marketing segment. It has also helped the organization to diversify revenue streams.

WEAKNESSES OF SHOULD KELLOGG'S LAUNCH

GLUTEN-FREE PRODUCTS IN INDIA?

WHAT ARE "WEAKNESSES" IN SWOT ANALYSIS?

Weaknesses in case study Should Kellogg's Launch Gluten-Free Products in India? can either be absence
of strengths or resources of capabilities that are required but at present the organization doesn't have.
Decision makers have to be certain if the weakness is present because of lack of strategic planning or as a
result of strategic choice.

- Declining per unit revenue for Gluten Kellogg's - competitiveness in the industryname industry is
putting downward pressure on the profitability. A starting guide to manage this situation for companyname
is – objectively assessing the present value propositions of the various products.

- Gross Margins and Operating Margins which could be improved and going forward may put pressure
on the Gluten Kellogg's financial statement.

- Business Model of Gluten Kellogg's can be easily imitated by the competitors in the industryname
industry. To overcome these challenges companyname needs to build a platform model that can integrate
suppliers, vendors and end users.
- Niche markets and local monopolies that company’s like Should Kellogg's Launch Gluten-Free
Products in India? able to exploit are fast disappearing. The customer network that Gluten Kellogg's has
promoted is proving less and less effective.

- High cost of replacing existing experts within the organization. Few employees are responsible for the
Gluten Kellogg's's knowledge base and replacing them will be extremely difficult in the present conditions.

- High turnover of employees at the lower levels is also a concern for the Gluten Kellogg's . It can lead to
higher salaries to maintain the talent within the firm.

OPPORTUNITIES - SHOULD KELLOGG'S LAUNCH

GLUTEN-FREE PRODUCTS IN INDIA?

WHAT ARE "OPPORTUNITIES" IN SWOT ANALYSIS?

Opportunities are potential areas where the firm chan identify potential for - growth, profits, and market
share.

- Opportunities in Online Space - Increasing adoption of online services by customers will also enable
Gluten Kellogg's to provide new offerings to the customers in Product development industry.

- Trend of customers migrating to higher end products - It represents great opportunity for Gluten
Kellogg's, as the firm has strong brand recognition in the premium segment, customers have experience
with excellent customer services provided by Gluten Kellogg's brands in the lower segment. It can be a
win-win for the company and provides an opportunity to increase the profitability.

- Accelerated technological innovations and advances are improving industrial productivity, allowing
suppliers to manufacture vast array of products and services. This can help Gluten Kellogg's to
significantly venture into adjacent products.

- Customer preferences are fast changing - Driven by rising disposable incomes, easy access to
information, and fast adoption of technological products, customers today are more willing to experiment /
try new products in the market.
- Lower inflation rate - The low inflation rate bring more stability in the market, enable credit at lower
interest rate to the customers of Gluten Kellogg's. This will increase the consumption of Gluten Kellogg's
products.

- Increasing customer base in lower segments - As customers have to migrate from un-organized
operators in the Product development industry to licensed players. It will provide Gluten Kellogg's an
opportunity to penetrate entry level market with a no-frill offering.

THEATS IN SHOULD KELLOGG'S LAUNCH GLUTEN-

FREE PRODUCTS IN INDIA? CASE STUDY

WHAT ARE "THREATS" IN SWOT ANALYSIS?

Threats are factors that can be potential dangers to the firm's business models because of changes in macro
economic factors and changing consumer perceptions. Threats can be managed but not controlled.

- Competitors catching up with the product development - Even though at present the Gluten Kellogg's
is still leader in product innovation in the Sales & Marketing segment. It is facing stiff challenges from
international and local competitors.

- Distrust of institutions and increasing threat of legal actions for Gluten Kellogg's - As the WTO
regulations and laws are difficult to enforce in various markets. Legal procedures have become expensive
and long drawn process. It can lead to less investment into emerging markets by Gluten Kellogg's thus
resulting in slower growth.

- Changing political environment with US and China trade war, Brexit impacting European Union, and
overall instability in the middle east can impact Gluten Kellogg's business both in local market and in
international market.

- Shortage of skilled human resources - Given the high turnover of employees and increasing
dependence on innovative solution, companyname can face skilled human resources challenges in the near
future.
- Changing demographics - As the babyboomers are retiring and new generation finding hard to replace
their purchasing power. This can lead to higher profits in the short run for Gluten Kellogg's but reducing
margins over the long run as young people are less brand loyal and more open to experimentation.

- Competitive pressures - As the new product launch cycles are reducing in the Product development
industry. It has put additional competitive pressures on players such as Gluten Kellogg's. Given the large
customer base, Gluten Kellogg's can't respond quickly to the needs of the niche markets that disruptors are
focusing on.

How do you perform SWOT Analysis?

What SWOT analysis explains?
Objectives of Performing SWOT analysis at Should Kellogg's Launch Gluten-Free Products
in India? for Sales & Marketing Segment

SWOT analysis is one of the most widely used tools for strategic analysis. According to a research done by
Harvard Business School – more than 75% of the leaders in strategy department had used SWOT analysis
for the purpose of strategic analysis. Strategists at Gluten Kellogg's can utilize SWOT for following
objectives -

Using SWOT for Strategic Planning at Should Kellogg's Launch Gluten-Free Products in
India?

Over the years the nature of the strategic planning has changed in the Sales & Marketing. leaders utilize
SWOT not only for short term planning but also for long term strategic planning. It will provide the leaders
with a better understanding of market, organization, and competitors.

Using SWOT for Performance Improvements

In the short term SWOT is an effective tool to improve business processes, part of business, or both
together. SWOT helps Gluten Kellogg's managers to identify areas of weakness in process in the
organization. Managing and eliminating these weaknesses can drive future growth of Gluten Kellogg's.
Using SWOT analysis for Venture Feasibility, New Project Viability & New Product Launch

Project management and feasibility analysis have become more specialized. SWOT analysis can still help
leaders at Gluten Kellogg's to work out the pros and cons of new project, initial viability and long term
scope keeping in the competitors’ strategy and macro environment development.

Using SWOT to Thwart Competitive Challenges

Often leaders neglect trends in macro environment because of the narrow focus on the industry. It can
happen to Gluten Kellogg's in the Product development at the present moment. To manage these
competitive challenges and macro environment trends leaders at Should Kellogg's Launch Gluten-Free
Products in India? can use SWOT to pinpoint specific threats and allocate requisite resources to deal with
those threats.

Using SWOT Analysis to Set Corporate Goals & Key Objectives

The easiest objective for which SWOT analysis can be used by Gluten Kellogg's is for setting strategic
goals, defining key objective areas and desired results. This can lead to a time based SWOT analysis
exercise where Gluten Kellogg's leaders conduct SWOT at a fixed interval and assess what it needs to
tinker to achieve the stated goals.

Steps to conduct Should Kellogg's Launch Gluten-Free

Products in India? SWOT Analysis
Clearly defining the objectives of the SWOT analysis. Managers should define the appropriate scope for
the analysis. If the scope is too broad then SWOT analysis won’t able to highlight internal factors and if
the scope is kept too narrow then managers can miss the macro environment opportunities and threats.

Try to substantiate the strengths, weaknesses as objectively as possible in terms of what the Gluten
Kellogg's does, how it does it, and where are there scope of improvements.

Managers in the case study Should Kellogg's Launch Gluten-Free Products in India? can also use SWOT
analysis to understand how key strengths can be extended either to adjacent areas or new industries all
together.
Analyzing the macro trends from not only Sales & Marketing industry perspective but from a more holistic
perspective. It will provide better clues regarding where customers are going and what trends the firm can
leverage.

Key considerations to write a good SWOT Analysis of Case Study Should Kellogg's Launch
Gluten-Free Products in India?

- Are there people extremely critical to organization that can tilt the balance between strengths and
weaknesses of the company.

- Isolate the strengths and weaknesses of the Gluten Kellogg's as much as possible.

- Defining what skills are essential for the survival of the Gluten Kellogg's in Sales & Marketing industry.

- What strategies Gluten Kellogg's can employ to diversify the risks emerging from the weaknesses of
organization and threats from the macro environment.

- Provide proper weightage to the various factors that drive Gluten Kellogg's topline and bottomline
growth.

How often the firm in Should Kellogg's Launch Gluten-Free Products in India? case study
should conduct SWOT Analysis?

The frequency of conducting SWOT analysis depends upon the objectives of the company and rate of
change in the industry it operates in. The firm in Should Kellogg's Launch Gluten-Free Products in India?
case study should conduct SWOT analysis after every 2-3 years.

What is the difference between SWOT Analysis and PESTEL Analysis of Should Kellogg's
Launch Gluten-Free Products in India?

PESTEL, a complementary tool to SWOT, expands on the analysis of external context by looking in detail
at specific types of issues that frequently have an impact on implementation of project/ initiatives.
References Books on Should Kellogg's Launch Gluten-Free Products in India? SWOT Analysis

Sandeep Puri, Mayank Rawat, Arjit Rawal, Akshay Nangia (2018), "Should Kellogg's Launch Gluten-
Free Products in India? Harvard Business Review Case Study. Published by HBR Publications.

Euromonitor (2018), "Sales & Marketing Sector Analysis ", Published in 2018.

A. D. Chandler, Strategy and Structure (Cambridge, Mass.: MIT Press, 1962)

L. Wrigley, Divisional Autonomy and Diversification (PhD, Harvard Business School, 1970)

M. E. Porter, Competitive Strategy(New York: Free Press, 1980)

O. E. Williamson, Markets and Hierarchies(New York: Free Press, 1975)

R. E. White, Generic Business Strategies, Organizational Context and Performance: An Empirical

Investigation, Strategic Management Journal7 (1986)