State Bank of India: Kohinoor Banjara Branch SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of State Bank of India: Kohinoor Banjara Branch
"State Bank of India: Kohinoor Banjara Branch is a case that documents the development and execution of a novel, high-end branch by a public sector bank in India whose original mandate was to be a "banker to every Indian." Specifically, it traces the development of the bank's Kohinoor branch to serve the Ultra High Net-Worth Individuals (UHNIs) in Hyderabad, the capital city of the state of Andhra Pradesh in India, and considers the question of whether a national rollout of the concept would be viable and successful. It describes the design and execution of the new branch from the twin perspectives of brand extension and new service operation, and raises questions related to the expansion of the idea on both dimensions, from a pilot level to a full-blown rollout. It also takes into account such factors as customer selection for the extension of a mass brand into the ultra-luxury end, the desired approach to serve such elite customers and the long-term prospects for a luxury extension of a mass service brand. Following the success of the branch in Hyderabad, SBI's associate bank, State Bank of Bikaner and Jaipur (SBBJ) planned to launch a Kohinoor-type branch in Jaipur. However, there were important concerns that had to be addressed. On the one hand, SBI had to break free of its legacy image of being an archaic organization, and on the other, it did not want to send out the signal that it was no longer a common man's bank. Given such challenges, SBI was faced with the question: Should it or should it not roll out Kohinoor-type branches across India? "
Swot Analysis of "State Bank of India: Kohinoor Banjara Branch" written by Piyush Kumar, Rishtee Batra, Arohini Narain includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Kohinoor Branch facing as an external strategic factors. Some of the topics covered in State Bank of India: Kohinoor Banjara Branch case study are - Strategic Management Strategies, Customer service, Supply chain and Sales & Marketing.
Some of the macro environment factors that can be used to understand the State Bank of India: Kohinoor Banjara Branch casestudy better are - – increasing government debt because of Covid-19 spendings, technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic ,
digital marketing is dominated by two big players Facebook and Google, increasing energy prices, etc
Introduction to SWOT Analysis of State Bank of India: Kohinoor Banjara Branch
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in State Bank of India: Kohinoor Banjara Branch case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Kohinoor Branch, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Kohinoor Branch 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 State Bank of India: Kohinoor Banjara Branch can be done for the following purposes –
1. Strategic planning using facts provided in State Bank of India: Kohinoor Banjara Branch case study
2. Improving business portfolio management of Kohinoor Branch
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Kohinoor Branch
Strengths State Bank of India: Kohinoor Banjara Branch | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Kohinoor Branch in State Bank of India: Kohinoor Banjara Branch Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Kohinoor Branch 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 Kohinoor Branch in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Kohinoor Branch has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in State Bank of India: Kohinoor Banjara Branch Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Kohinoor Branch digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Kohinoor Branch has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Effective Research and Development (R&D)
– Kohinoor Branch has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study State Bank of India: Kohinoor Banjara Branch - staying ahead in the 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 Sales & Marketing field
– Kohinoor Branch is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Kohinoor Branch in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Kohinoor Branch
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Kohinoor Branch does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Kohinoor Branch is one of the most innovative firm in sector. Manager in State Bank of India: Kohinoor Banjara Branch Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Highly skilled collaborators
– Kohinoor Branch has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in State Bank of India: Kohinoor Banjara Branch HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Kohinoor Branch in the sector have low bargaining power. State Bank of India: Kohinoor Banjara Branch has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Kohinoor Branch to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Kohinoor Branch 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 Kohinoor Branch is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in State Bank of India: Kohinoor Banjara Branch Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Kohinoor Branch has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Kohinoor Branch 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.
Weaknesses State Bank of India: Kohinoor Banjara Branch | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of State Bank of India: Kohinoor Banjara Branch are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study State Bank of India: Kohinoor Banjara Branch, it seems that the employees of Kohinoor Branch don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Capital Spending Reduction
– Even during the low interest decade, Kohinoor Branch 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 industry using digital technology.
Low market penetration in new markets
– Outside its home market of Kohinoor Branch, firm in the HBR case study State Bank of India: Kohinoor Banjara Branch needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Kohinoor Branch has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Kohinoor Branch is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study State Bank of India: Kohinoor Banjara Branch can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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 Kohinoor Branch supply chain. Even after few cautionary changes mentioned in the HBR case study - State Bank of India: Kohinoor Banjara Branch, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Kohinoor Branch vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Kohinoor Branch 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.
Products dominated business model
– Even though Kohinoor Branch has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - State Bank of India: Kohinoor Banjara Branch should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Kohinoor Branch has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Kohinoor Branch even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Increasing silos among functional specialists
– The organizational structure of Kohinoor Branch is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Kohinoor Branch needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Kohinoor Branch to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Kohinoor Branch products
– To increase the profitability and margins on the products, Kohinoor Branch needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities State Bank of India: Kohinoor Banjara Branch | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study State Bank of India: Kohinoor Banjara Branch are -
Using analytics as competitive advantage
– Kohinoor Branch has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study State Bank of India: Kohinoor Banjara Branch - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Kohinoor Branch to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Kohinoor Branch in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing segment, and it will provide faster access to the consumers.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Kohinoor Branch can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Kohinoor Branch can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing segment. 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.
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 Kohinoor Branch 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Kohinoor Branch can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Kohinoor Branch 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 Kohinoor Branch to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Kohinoor Branch is facing challenges because of the dominance of functional experts in the organization. State Bank of India: Kohinoor Banjara Branch case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, 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, Kohinoor Branch can use these opportunities to build new business models that can help the communities that Kohinoor Branch operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Kohinoor Branch 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, as suggested in case study, State Bank of India: Kohinoor Banjara Branch, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Kohinoor Branch 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.
Buying journey improvements
– Kohinoor Branch can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. State Bank of India: Kohinoor Banjara Branch suggest that firm 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 Kohinoor Branch has opened avenues for new revenue streams for the organization in the industry. This can help Kohinoor Branch to build a more holistic ecosystem as suggested in the State Bank of India: Kohinoor Banjara Branch case study. Kohinoor Branch can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats State Bank of India: Kohinoor Banjara Branch External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study State Bank of India: Kohinoor Banjara Branch are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Kohinoor Branch 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 prominent markets illustrated in HBR case study State Bank of India: Kohinoor Banjara Branch .
Environmental challenges
– Kohinoor Branch 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. Kohinoor Branch can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Increasing wage structure of Kohinoor Branch
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Kohinoor Branch.
Consumer confidence and its impact on Kohinoor Branch 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 the industry and other sectors.
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.
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 Kohinoor Branch.
Shortening product life cycle
– it is one of the major threat that Kohinoor Branch is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Kohinoor Branch in the Sales & Marketing industry. The Sales & Marketing industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
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. Kohinoor Branch needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Kohinoor Branch with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Kohinoor Branch business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Kohinoor Branch 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 field.
High dependence on third party suppliers
– Kohinoor Branch 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.
Weighted SWOT Analysis of State Bank of India: Kohinoor Banjara Branch Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study State Bank of India: Kohinoor Banjara Branch 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 the case study State Bank of India: Kohinoor Banjara Branch 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 the Harvard case study State Bank of India: Kohinoor Banjara Branch 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 State Bank of India: Kohinoor Banjara Branch is 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 Kohinoor Branch needs to make to build a sustainable competitive advantage.
