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 - – supply chains are disrupted by pandemic , increasing household debt because of falling income levels, increasing energy prices, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings,
geopolitical disruptions, wage bills are increasing, 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 -
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.
Low bargaining power of suppliers
– Suppliers of Inventure Kenya in the sector have low bargaining power. Bringing Quick Loans to the Unbankable in Kenya (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Inventure Kenya to manage not only supply disruptions but also source products at highly competitive prices.
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.
High switching costs
– The high switching costs that Inventure Kenya has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
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.
Training and development
– Inventure Kenya has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Bringing Quick Loans to the Unbankable in Kenya (A) 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 Inventure Kenya digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Inventure Kenya 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.
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.
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.
Superior customer experience
– The customer experience strategy of Inventure Kenya in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Inventure Kenya is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Philip Parker, Carolyn Wendell can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Cross disciplinary teams
– Horizontal connected teams at the Inventure Kenya 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.
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 -
High cash cycle compare to competitors
Inventure Kenya 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 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.
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.
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.
Capital Spending Reduction
– Even during the low interest decade, Inventure Kenya 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Bringing Quick Loans to the Unbankable in Kenya (A) HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Inventure Kenya has relatively successful track record of launching new products.
No frontier risks strategy
– After analyzing the HBR case study Bringing Quick Loans to the Unbankable in Kenya (A), it seems that company is thinking about the frontier risks that can impact Sales & Marketing strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
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.
High operating costs
– Compare to the competitors, firm in the HBR case study Bringing Quick Loans to the Unbankable in Kenya (A) has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Inventure Kenya 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Bringing Quick Loans to the Unbankable in Kenya (A), in the dynamic environment Inventure Kenya has struggled to respond to the nimble upstart competition. Inventure Kenya has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
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 -
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.
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.
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.
Building a culture of innovation
– managers at Inventure Kenya can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Sales & Marketing segment.
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.
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.
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.
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.
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 Inventure Kenya 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.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Inventure Kenya is facing challenges because of the dominance of functional experts in the organization. Bringing Quick Loans to the Unbankable in Kenya (A) 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Inventure Kenya 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 Inventure Kenya to hire the very best people irrespective of their geographical location.
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 -
Consumer confidence and its impact on Inventure Kenya 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.
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 Inventure Kenya.
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.
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.
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 .
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.
Stagnating economy with rate increase
– Inventure Kenya 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.
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.
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.
Environmental challenges
– Inventure Kenya 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. Inventure Kenya can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
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.
High dependence on third party suppliers
– Inventure Kenya 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 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.