SWOT And Global Strategy For Murray Goulburn - Assignment Solution

• SWOT Analysis

SWOT matrix combines the insight of internal as well as external environment of organisation and aids in making market entry decision. It encompasses; strengths, weaknesses, opportunities and threats. 

• Strengths of Murray Goulburn

The core strength of MG lies in being one of the oldest as well as most recognised dairy business of Australia. The portfolio of diverse, pasteurised and high quality dairy products also adds in strength of company and makes it highly differentiated among other dairy companies. The brand is well recognised in Australia and in international markets and it has solid customer base. Another strength of company is based on its operational excellence and innovation capabilities. One highly differentiated strength of Murray is its farmer’s cooperative ownership, which makes its shareholder’s core suppliers of the milk and thus risk of supply side is reduced for company. 

• Weaknesses of Murray Goulburn 

Murray Goulburn has few weaknesses as well. For instance, its exposure is limited in terms of direct production and it only exports its milk and dairy products to international markets. Additionally, Murray has no prior experience with Philippines market and demands of its consumers. 

• Opportunities for Murray Goulburn

There are many opportunities for Murray, as it can expand its brand portfolio to enter into markets with new product categories. Additionally, Murray has opportunities to make entrance in markets which do not have well developed dairy sector and depends on foreign dairy products. For instance, China, Japan, South Korea and Philippines are not self-sufficient in dairy industry and thus entrance in this markets can offer huge revenue to Murray. 

• Threats for Murray Goulburn

Threats for Murray Goulburn are mainly linked with its entrance in international markets. For instance, mainly company exports milk to international markets and trade barriers posit threat to approach export markets. Additionally, the competition is always a threat for any business and Murray needs to devise strategies for dealing with competition in both domestic as well as international markets including for Philippines market. Additionally, changes in external business environment, such as economic, political and technological are also likely to pose threat for Murray. 

• Lean Thinking Principles 

Lean thinking principles offers way to organisation of resources for granting more benefits to company as well as to society. Murray can make reliance on five lean thinking principles including; value, value stream, flow, pull and perfection. Murray can adopt top down pricing approach in Philippines market to determine the value expected by customers for powdered milk and formula. In the next step of value stream, company can identify and eliminate activities which do not add value to product and thus waste can be minimised. It will require changes in production processes of company.