Case Study Description of Ethiopia: An Emerging Market Opportunity?
The Ethiopia: An Emerging Market Opportunity? case centers on the potential and challenges of entering an emerging market. It provides a brief overview of the Ethiopian market, market reforms and policies, and the business environment faced by foreign companies. Three multinational businesses, CareCo, ShoeCo, and MedCo, must decide whether and how to enter the Ethiopian market. Students are asked to make a recommendation for each company based on the attractiveness of the market, the factors that matter most for success, and an assessment of what applies to the companies.
Swot Analysis of "Ethiopia: An Emerging Market Opportunity?" written by John A. Quelch, Sunru Yong includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ethiopian Ethiopia facing as an external strategic factors. Some of the topics covered in Ethiopia: An Emerging Market Opportunity? case study are - Strategic Management Strategies, Government, Marketing and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Ethiopia: An Emerging Market Opportunity? casestudy better are - – technology disruption, supply chains are disrupted by pandemic , increasing commodity prices, there is backlash against globalization, increasing energy prices, geopolitical disruptions, increasing household debt because of falling income levels,
increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Ethiopia: An Emerging Market Opportunity?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Ethiopia: An Emerging Market Opportunity? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ethiopian Ethiopia, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ethiopian Ethiopia 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 Ethiopia: An Emerging Market Opportunity? can be done for the following purposes –
1. Strategic planning using facts provided in Ethiopia: An Emerging Market Opportunity? case study
2. Improving business portfolio management of Ethiopian Ethiopia
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 Ethiopian Ethiopia
Strengths Ethiopia: An Emerging Market Opportunity? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ethiopian Ethiopia in Ethiopia: An Emerging Market Opportunity? Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Ethiopian Ethiopia in the sector have low bargaining power. Ethiopia: An Emerging Market Opportunity? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ethiopian Ethiopia to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Ethiopian Ethiopia 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 Ethiopia: An Emerging Market Opportunity? - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Ethiopian Ethiopia is present in almost all the verticals within the industry. This has provided firm in Ethiopia: An Emerging Market Opportunity? 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.
Cross disciplinary teams
– Horizontal connected teams at the Ethiopian Ethiopia 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.
Training and development
– Ethiopian Ethiopia has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Ethiopia: An Emerging Market Opportunity? 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.
High brand equity
– Ethiopian Ethiopia has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ethiopian Ethiopia to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the Ethiopia: An Emerging Market Opportunity? 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.
Superior customer experience
– The customer experience strategy of Ethiopian Ethiopia in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Ethiopian Ethiopia is one of the leading recruiters in the industry. Managers in the Ethiopia: An Emerging Market Opportunity? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Ethiopian Ethiopia is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Ethiopian Ethiopia 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 Ethiopia: An Emerging Market Opportunity? HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Ethiopian Ethiopia 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 John A. Quelch, Sunru Yong 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.
Weaknesses Ethiopia: An Emerging Market Opportunity? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ethiopia: An Emerging Market Opportunity? are -
Lack of clear differentiation of Ethiopian Ethiopia products
– To increase the profitability and margins on the products, Ethiopian Ethiopia needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Ethiopia: An Emerging Market Opportunity?, in the dynamic environment Ethiopian Ethiopia has struggled to respond to the nimble upstart competition. Ethiopian Ethiopia has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Ethiopian Ethiopia supply chain. Even after few cautionary changes mentioned in the HBR case study - Ethiopia: An Emerging Market Opportunity?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ethiopian Ethiopia vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Ethiopian Ethiopia 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.
Slow decision making process
– As mentioned earlier in the report, Ethiopian Ethiopia 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. Ethiopian Ethiopia 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
– Ethiopian Ethiopia 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.
Increasing silos among functional specialists
– The organizational structure of Ethiopian Ethiopia is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Ethiopian Ethiopia needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ethiopian Ethiopia to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Ethiopian Ethiopia 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.
Products dominated business model
– Even though Ethiopian Ethiopia 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 - Ethiopia: An Emerging Market Opportunity? should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Ethiopian Ethiopia 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Ethiopia: An Emerging Market Opportunity?, it seems that the employees of Ethiopian Ethiopia 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.
Opportunities Ethiopia: An Emerging Market Opportunity? | 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 Ethiopia: An Emerging Market Opportunity? are -
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. Ethiopian Ethiopia can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Ethiopian Ethiopia 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.
Using analytics as competitive advantage
– Ethiopian Ethiopia 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 Ethiopia: An Emerging Market Opportunity? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ethiopian Ethiopia to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Ethiopian Ethiopia in the consumer business. Now Ethiopian Ethiopia can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Ethiopian Ethiopia has opened avenues for new revenue streams for the organization in the industry. This can help Ethiopian Ethiopia to build a more holistic ecosystem as suggested in the Ethiopia: An Emerging Market Opportunity? case study. Ethiopian Ethiopia can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Ethiopian Ethiopia 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.
Developing new processes and practices
– Ethiopian Ethiopia 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Ethiopian Ethiopia can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Sales & Marketing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Ethiopian Ethiopia can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Ethiopian Ethiopia can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ethiopian Ethiopia 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, Ethiopia: An Emerging Market Opportunity?, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ethiopian Ethiopia 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.
Better consumer reach
– The expansion of the 5G network will help Ethiopian Ethiopia to increase its market reach. Ethiopian Ethiopia 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.
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 Ethiopian Ethiopia 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.
Threats Ethiopia: An Emerging Market Opportunity? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Ethiopia: An Emerging Market Opportunity? are -
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
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 Ethiopian Ethiopia in the Sales & Marketing sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Ethiopian Ethiopia 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.
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 Ethiopian Ethiopia.
Technology acceleration in Forth Industrial Revolution
– Ethiopian Ethiopia has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Ethiopian Ethiopia 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.
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 Ethiopian Ethiopia business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ethiopian Ethiopia with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Ethiopia: An Emerging Market Opportunity?, Ethiopian Ethiopia 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 .
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. Ethiopian Ethiopia can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Ethiopian Ethiopia 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.
Shortening product life cycle
– it is one of the major threat that Ethiopian Ethiopia is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Ethiopian Ethiopia needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Consumer confidence and its impact on Ethiopian Ethiopia 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.
Weighted SWOT Analysis of Ethiopia: An Emerging Market Opportunity? 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 Ethiopia: An Emerging Market Opportunity? 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 Ethiopia: An Emerging Market Opportunity? 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 Ethiopia: An Emerging Market Opportunity? 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 Ethiopia: An Emerging Market Opportunity? 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 Ethiopian Ethiopia needs to make to build a sustainable competitive advantage.
