Enhancing Competitive Strategy at Darling Kenya SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Enhancing Competitive Strategy at Darling Kenya
In September 2013, the managing director of Darling Kenya, a hair care product company headquartered in Nairobi, was pondering his next move. As a leader in the beauty hair care industry in Africa, the company needed to stay a step ahead of increasing competition from both local and multinational firms. With limited room to grow in the industry, he was looking at a set of alternatives to protect Darling's brand from losing market share. Which option would benefit the company the most: exploring new advertising channels, especially on the Internet and in social media; reinvigorating the brand with new packaging and higher quality; or entering the rural market through road shows?
Swot Analysis of "Enhancing Competitive Strategy at Darling Kenya" written by Pamela Odhiambo, Nicole R.D. Haggerty, Ali Kanji, Brandon Swartz includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Darling Hair facing as an external strategic factors. Some of the topics covered in Enhancing Competitive Strategy at Darling Kenya case study are - Strategic Management Strategies, Strategy and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Enhancing Competitive Strategy at Darling Kenya casestudy better are - – increasing transportation and logistics costs, cloud computing is disrupting traditional business models, increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China,
increasing energy prices, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Enhancing Competitive Strategy at Darling Kenya
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Enhancing Competitive Strategy at Darling Kenya case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Darling Hair, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Darling Hair 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 Enhancing Competitive Strategy at Darling Kenya can be done for the following purposes –
1. Strategic planning using facts provided in Enhancing Competitive Strategy at Darling Kenya case study
2. Improving business portfolio management of Darling Hair
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 Darling Hair
Strengths Enhancing Competitive Strategy at Darling Kenya | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Darling Hair in Enhancing Competitive Strategy at Darling Kenya Harvard Business Review case study are -
Learning organization
- Darling Hair 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 Darling Hair is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Enhancing Competitive Strategy at Darling Kenya Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Darling Hair has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Darling Hair 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.
Highly skilled collaborators
– Darling Hair 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 Enhancing Competitive Strategy at Darling Kenya HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Darling Hair in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Darling Hair is one of the leading recruiters in the industry. Managers in the Enhancing Competitive Strategy at Darling Kenya 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
– Darling Hair is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Darling Hair has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Darling Hair to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Darling Hair is present in almost all the verticals within the industry. This has provided firm in Enhancing Competitive Strategy at Darling Kenya 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.
Low bargaining power of suppliers
– Suppliers of Darling Hair in the sector have low bargaining power. Enhancing Competitive Strategy at Darling Kenya has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Darling Hair to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Sales & Marketing field
– Darling Hair 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 Darling Hair in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Darling Hair digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Darling Hair 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.
Sustainable margins compare to other players in Sales & Marketing industry
– Enhancing Competitive Strategy at Darling Kenya firm has clearly differentiated products in the market place. This has enabled Darling Hair to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Darling Hair to invest into research and development (R&D) and innovation.
Weaknesses Enhancing Competitive Strategy at Darling Kenya | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Enhancing Competitive Strategy at Darling Kenya are -
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 Darling Hair supply chain. Even after few cautionary changes mentioned in the HBR case study - Enhancing Competitive Strategy at Darling Kenya, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Darling Hair vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Darling Hair is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Enhancing Competitive Strategy at Darling Kenya can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Darling Hair 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. Darling Hair 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.
Interest costs
– Compare to the competition, Darling Hair 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.
Need for greater diversity
– Darling Hair 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Darling Hair needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High operating costs
– Compare to the competitors, firm in the HBR case study Enhancing Competitive Strategy at Darling Kenya 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 Darling Hair 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Enhancing Competitive Strategy at Darling Kenya 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 Enhancing Competitive Strategy at Darling Kenya can leverage the sales team experience to cultivate customer relationships as Darling Hair is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Darling Hair is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Darling Hair needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Darling Hair to focus more on services rather than just following the product oriented approach.
Low market penetration in new markets
– Outside its home market of Darling Hair, firm in the HBR case study Enhancing Competitive Strategy at Darling Kenya needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Enhancing Competitive Strategy at Darling Kenya HBR case study mentions - Darling Hair takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Opportunities Enhancing Competitive Strategy at Darling Kenya | 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 Enhancing Competitive Strategy at Darling Kenya are -
Leveraging digital technologies
– Darling Hair 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Darling Hair 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, Enhancing Competitive Strategy at Darling Kenya, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Darling Hair 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.
Learning at scale
– Online learning technologies has now opened space for Darling Hair 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.
Manufacturing automation
– Darling Hair 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.
Using analytics as competitive advantage
– Darling Hair 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 Enhancing Competitive Strategy at Darling Kenya - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Darling Hair to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Darling Hair can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Darling Hair 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.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Darling Hair can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Darling Hair can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Enhancing Competitive Strategy at Darling Kenya 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.
Loyalty marketing
– Darling Hair has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, 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, Darling Hair can use these opportunities to build new business models that can help the communities that Darling Hair 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 Darling Hair has opened avenues for new revenue streams for the organization in the industry. This can help Darling Hair to build a more holistic ecosystem as suggested in the Enhancing Competitive Strategy at Darling Kenya case study. Darling Hair can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Enhancing Competitive Strategy at Darling Kenya External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Enhancing Competitive Strategy at Darling Kenya are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Darling Hair 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.
Shortening product life cycle
– it is one of the major threat that Darling Hair is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Darling Hair 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.
Consumer confidence and its impact on Darling Hair 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 Darling Hair.
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.
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 Darling Hair business can come under increasing regulations regarding data privacy, data security, 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. Darling Hair needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Darling Hair 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
– Darling Hair 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Darling Hair 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 Enhancing Competitive Strategy at Darling Kenya .
High dependence on third party suppliers
– Darling Hair 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.
Increasing wage structure of Darling Hair
– 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 Darling Hair.
Weighted SWOT Analysis of Enhancing Competitive Strategy at Darling Kenya 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 Enhancing Competitive Strategy at Darling Kenya 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 Enhancing Competitive Strategy at Darling Kenya 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 Enhancing Competitive Strategy at Darling Kenya 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 Enhancing Competitive Strategy at Darling Kenya 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 Darling Hair needs to make to build a sustainable competitive advantage.