Bringing Quick Loans to the Unbankable in Kenya (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Bringing Quick Loans to the Unbankable in Kenya (A)
This case tells the story of InVenture, a data science company based in California, that has created a machine learning algorithm to identify the creditworthiness of those with no credit history by tracking their mobile data patterns. With this technology they define a credit score and can issue a loan almost instantly to the borrower via a mobile phone. The technology behind InVenture has been used to develop a smart phone app - Mkopo Rahisi - which enables loans to be approved quickly to small business owners in Kenya.
Swot Analysis of "Bringing Quick Loans to the Unbankable in Kenya (A)" written by Philip Parker, Carolyn Wendell includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Inventure Kenya facing as an external strategic factors. Some of the topics covered in Bringing Quick Loans to the Unbankable in Kenya (A) case study are - Strategic Management Strategies, Emerging markets, Entrepreneurship and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Bringing Quick Loans to the Unbankable in Kenya (A) casestudy better are - – challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, talent flight as more people leaving formal jobs, geopolitical disruptions,
increasing energy prices, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Bringing Quick Loans to the Unbankable in Kenya (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Bringing Quick Loans to the Unbankable in Kenya (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Inventure Kenya, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Inventure Kenya 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 Bringing Quick Loans to the Unbankable in Kenya (A) can be done for the following purposes –
1. Strategic planning using facts provided in Bringing Quick Loans to the Unbankable in Kenya (A) case study
2. Improving business portfolio management of Inventure Kenya
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 Inventure Kenya
Strengths Bringing Quick Loans to the Unbankable in Kenya (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Inventure Kenya in Bringing Quick Loans to the Unbankable in Kenya (A) Harvard Business Review case study are -
Highly skilled collaborators
– Inventure Kenya 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 Bringing Quick Loans to the Unbankable in Kenya (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Inventure Kenya is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy in the Bringing Quick Loans to the Unbankable in Kenya (A) Harvard Business Review case study comprises – understanding the underlying the factors in the 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.
High brand equity
– Inventure Kenya has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Inventure Kenya to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Sales & Marketing industry
– Bringing Quick Loans to the Unbankable in Kenya (A) firm has clearly differentiated products in the market place. This has enabled Inventure Kenya to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Inventure Kenya to invest into research and development (R&D) and innovation.
Ability to lead change in Sales & Marketing field
– Inventure Kenya 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 Inventure Kenya in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Inventure Kenya is present in almost all the verticals within the industry. This has provided firm in Bringing Quick Loans to the Unbankable in Kenya (A) case study 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.
Innovation driven organization
– Inventure Kenya is one of the most innovative firm in sector. Manager in Bringing Quick Loans to the Unbankable in Kenya (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Inventure Kenya has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Inventure Kenya 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.
Ability to recruit top talent
– Inventure Kenya is one of the leading recruiters in the industry. Managers in the Bringing Quick Loans to the Unbankable in Kenya (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Inventure Kenya 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 Bringing Quick Loans to the Unbankable in Kenya (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Inventure Kenya 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 Inventure Kenya is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Bringing Quick Loans to the Unbankable in Kenya (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Bringing Quick Loans to the Unbankable in Kenya (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Bringing Quick Loans to the Unbankable in Kenya (A) are -
Slow decision making process
– As mentioned earlier in the report, Inventure Kenya 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. Inventure Kenya 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.
Low market penetration in new markets
– Outside its home market of Inventure Kenya, firm in the HBR case study Bringing Quick Loans to the Unbankable in Kenya (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Bringing Quick Loans to the Unbankable in Kenya (A), is just above the industry average. Inventure Kenya needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Inventure Kenya is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Bringing Quick Loans to the Unbankable in Kenya (A) 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 bargaining power of channel partners
– Because of the regulatory requirements, Philip Parker, Carolyn Wendell suggests that, Inventure Kenya 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 industry.
Products dominated business model
– Even though Inventure Kenya 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 - Bringing Quick Loans to the Unbankable in Kenya (A) should strive to include more intangible value offerings along with its core products and services.
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 Inventure Kenya supply chain. Even after few cautionary changes mentioned in the HBR case study - Bringing Quick Loans to the Unbankable in Kenya (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Inventure Kenya vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Inventure Kenya 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.
Interest costs
– Compare to the competition, Inventure Kenya 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.
Lack of clear differentiation of Inventure Kenya products
– To increase the profitability and margins on the products, Inventure Kenya needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Bringing Quick Loans to the Unbankable in Kenya (A) that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Bringing Quick Loans to the Unbankable in Kenya (A) can leverage the sales team experience to cultivate customer relationships as Inventure Kenya is planning to shift buying processes online.
Opportunities Bringing Quick Loans to the Unbankable in Kenya (A) | 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 Bringing Quick Loans to the Unbankable in Kenya (A) are -
Buying journey improvements
– Inventure Kenya can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Bringing Quick Loans to the Unbankable in Kenya (A) 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 Inventure Kenya has opened avenues for new revenue streams for the organization in the industry. This can help Inventure Kenya to build a more holistic ecosystem as suggested in the Bringing Quick Loans to the Unbankable in Kenya (A) case study. Inventure Kenya can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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, Inventure Kenya can use these opportunities to build new business models that can help the communities that Inventure Kenya operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Leveraging digital technologies
– Inventure Kenya 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.
Better consumer reach
– The expansion of the 5G network will help Inventure Kenya to increase its market reach. Inventure Kenya will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Inventure Kenya in the consumer business. Now Inventure Kenya can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Inventure Kenya can develop new processes and procedures in Sales & Marketing 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.
Learning at scale
– Online learning technologies has now opened space for Inventure Kenya 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Inventure Kenya can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Inventure Kenya 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Inventure Kenya can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Inventure Kenya 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Inventure Kenya 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, Bringing Quick Loans to the Unbankable in Kenya (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Bringing Quick Loans to the Unbankable in Kenya (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Bringing Quick Loans to the Unbankable in Kenya (A) are -
Easy access to finance
– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Inventure Kenya can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Inventure Kenya business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Inventure Kenya has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Inventure Kenya needs to keep up with the evolution of technology in the Sales & Marketing 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Inventure Kenya 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 Bringing Quick Loans to the Unbankable in Kenya (A) .
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. Inventure Kenya needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Regulatory challenges
– Inventure Kenya 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 Sales & Marketing industry regulations.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Inventure Kenya in the Sales & Marketing sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Inventure Kenya with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Increasing wage structure of Inventure Kenya
– 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 Inventure Kenya.
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. Inventure Kenya 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Inventure Kenya 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Bringing Quick Loans to the Unbankable in Kenya (A), Inventure Kenya may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
Weighted SWOT Analysis of Bringing Quick Loans to the Unbankable in Kenya (A) 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 Bringing Quick Loans to the Unbankable in Kenya (A) 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 Bringing Quick Loans to the Unbankable in Kenya (A) 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 Bringing Quick Loans to the Unbankable in Kenya (A) 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 Bringing Quick Loans to the Unbankable in Kenya (A) 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 Inventure Kenya needs to make to build a sustainable competitive advantage.