Well suited for MBA, Executive MBA, Global Executive MBA, and executive education programs, this field-based case uses Dunia Finance LLC, an Abu Dhabi-based financial services company, to present circumstances that allow for an analysis of the firm's cross-selling process and how it could be leveraged. The unique aspects of the region leave the case open to exploring uncertainty and risk based on the firm's own experience with the customer. The case provides an overview of the customer relationship and allows a discussion of measuring and managing customer profitability and contrasting it with the management of customers in the developed world and emerging markets. In the case, Ali Hurbas, head of the Strategic Analytics Unit, faces two options. Did it make sense to focus on bringing in new customers, or would ramping up cross-selling efforts to existing customers offer greater profits? The material also allows for an evaluation of different statistical models that can be used to predict the next product a customer would most likely buy. A teaching note is available to instructors to assist in preparing for the debrief session.
Authors :: Samuel E Bodily, Rajkumar Venkatesan, Gerry Yemen
Swot Analysis of "Dunia Finance LLC (A)" written by Samuel E Bodily, Rajkumar Venkatesan, Gerry Yemen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Dunia Mba facing as an external strategic factors. Some of the topics covered in Dunia Finance LLC (A) case study are - Strategic Management Strategies, Sales and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Dunia Finance LLC (A) casestudy better are - – cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, wage bills are increasing, increasing government debt because of Covid-19 spendings, increasing energy prices,
geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Dunia Finance LLC (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Dunia Finance LLC (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Dunia Mba, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Dunia Mba 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 Dunia Finance LLC (A) can be done for the following purposes –
1. Strategic planning using facts provided in Dunia Finance LLC (A) case study
2. Improving business portfolio management of Dunia Mba
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 Dunia Mba
Strengths Dunia Finance LLC (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Dunia Mba in Dunia Finance LLC (A) Harvard Business Review case study are -
Analytics focus
– Dunia Mba 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 Samuel E Bodily, Rajkumar Venkatesan, Gerry Yemen 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.
Successful track record of launching new products
– Dunia Mba has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Dunia Mba 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.
Strong track record of project management
– Dunia Mba 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 Dunia Finance LLC (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.
Sustainable margins compare to other players in Sales & Marketing industry
– Dunia Finance LLC (A) firm has clearly differentiated products in the market place. This has enabled Dunia Mba to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Dunia Mba to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Dunia Mba 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 Dunia Finance LLC (A) 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 Dunia Mba in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Dunia Mba has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Dunia Mba to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Dunia Mba 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 Dunia Mba is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Dunia Finance LLC (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Dunia Mba is present in almost all the verticals within the industry. This has provided firm in Dunia Finance LLC (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.
Ability to lead change in Sales & Marketing field
– Dunia Mba 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 Dunia Mba in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Dunia Mba in the sector have low bargaining power. Dunia Finance LLC (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Dunia Mba to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Dunia Finance LLC (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Dunia Finance LLC (A) are -
Aligning sales with marketing
– It come across in the case study Dunia Finance LLC (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 Dunia Finance LLC (A) can leverage the sales team experience to cultivate customer relationships as Dunia Mba is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Dunia Finance LLC (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 Dunia Mba 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Dunia Mba 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.
Products dominated business model
– Even though Dunia Mba 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 - Dunia Finance LLC (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 Dunia Mba supply chain. Even after few cautionary changes mentioned in the HBR case study - Dunia Finance LLC (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Dunia Mba vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Dunia Mba, firm in the HBR case study Dunia Finance LLC (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Dunia Mba is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Dunia Mba needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Dunia Mba to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Dunia Mba 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.
Need for greater diversity
– Dunia Mba 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Dunia Mba is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Dunia Finance LLC (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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Dunia Finance LLC (A), in the dynamic environment Dunia Mba has struggled to respond to the nimble upstart competition. Dunia Mba has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Dunia Finance LLC (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 Dunia Finance LLC (A) are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Dunia Mba can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Dunia Mba has opened avenues for new revenue streams for the organization in the industry. This can help Dunia Mba to build a more holistic ecosystem as suggested in the Dunia Finance LLC (A) case study. Dunia Mba can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Dunia Mba 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 Dunia Mba to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Dunia Mba 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.
Manufacturing automation
– Dunia Mba 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
– Dunia Mba 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 Dunia Finance LLC (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Dunia Mba to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Dunia Mba 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. Dunia Mba 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.
Learning at scale
– Online learning technologies has now opened space for Dunia Mba 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.
Better consumer reach
– The expansion of the 5G network will help Dunia Mba to increase its market reach. Dunia Mba 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.
Buying journey improvements
– Dunia Mba can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Dunia Finance LLC (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.
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 Dunia Mba in the consumer business. Now Dunia Mba can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Dunia Mba 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.
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. Dunia Mba can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Dunia Finance LLC (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Dunia Finance LLC (A) are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Dunia Finance LLC (A), Dunia Mba 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 .
Technology acceleration in Forth Industrial Revolution
– Dunia Mba has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Dunia Mba 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.
Environmental challenges
– Dunia Mba 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. Dunia Mba can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
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. Dunia Mba 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.
Increasing wage structure of Dunia Mba
– 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 Dunia Mba.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Dunia Mba with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Dunia Mba can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Dunia Mba in the Sales & Marketing sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Dunia Mba is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Dunia Mba business can come under increasing regulations regarding data privacy, data security, etc.
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 Dunia Mba.
Consumer confidence and its impact on Dunia Mba 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.
Regulatory challenges
– Dunia Mba 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.
Weighted SWOT Analysis of Dunia Finance LLC (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 Dunia Finance LLC (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 Dunia Finance LLC (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 Dunia Finance LLC (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 Dunia Finance LLC (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 Dunia Mba needs to make to build a sustainable competitive advantage.