Case Study Description of Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture
Who are the right investors for a for-profit company targeting the world's poor? Before this start-up spends hundreds of hours pursuing venture capital (VC), Movirtu must decide whether a profit-oriented VC investment will fit its vision for both growth and social impact. Movirtu's "Cloud Phone" software is designed for the nearly one billion people who cannot afford mobile phones and, as a result, borrow phones from friends and family. Movirtu provides phone sharers with a private number that sends and receives calls. Movirtu already secured two seed-round impact investors, Gray Ghost Ventures and Grassroots Business Fund. For its next round of financing, Movirtu was approached by TLcom Capital, an experienced VC. Students must decide: will having TLcom as an investor allow Movirtu to not only survive but achieve maximum financial and social impact?
Swot Analysis of "Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture" written by Ted London includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Movirtu Movirtu's facing as an external strategic factors. Some of the topics covered in Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture case study are - Strategic Management Strategies, Economic development, Emerging markets, Venture capital and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture casestudy better are - – there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices, wage bills are increasing, increasing transportation and logistics costs, increasing commodity prices, cloud computing is disrupting traditional business models,
central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Movirtu Movirtu's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Movirtu Movirtu's 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 Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture can be done for the following purposes –
1. Strategic planning using facts provided in Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture case study
2. Improving business portfolio management of Movirtu Movirtu's
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Movirtu Movirtu's
Strengths Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Movirtu Movirtu's in Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture Harvard Business Review case study are -
Ability to lead change in Strategy & Execution field
– Movirtu Movirtu's 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 Movirtu Movirtu's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Movirtu Movirtu's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Movirtu Movirtu's 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 Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Movirtu Movirtu's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Strategy & Execution industry
– Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture firm has clearly differentiated products in the market place. This has enabled Movirtu Movirtu's to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Movirtu Movirtu's to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Movirtu Movirtu's in the sector have low bargaining power. Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Movirtu Movirtu's to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Movirtu Movirtu's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Movirtu Movirtu's 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.
Innovation driven organization
– Movirtu Movirtu's is one of the most innovative firm in sector. Manager in Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Movirtu Movirtu's is one of the leading recruiters in the industry. Managers in the Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Movirtu Movirtu's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Movirtu Movirtu's 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
– Movirtu Movirtu's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Movirtu Movirtu's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Movirtu Movirtu's is present in almost all the verticals within the industry. This has provided firm in Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture 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.
Weaknesses Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture are -
Workers concerns about automation
– As automation is fast increasing in the segment, Movirtu Movirtu's 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture, it seems that the employees of Movirtu Movirtu's 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.
Low market penetration in new markets
– Outside its home market of Movirtu Movirtu's, firm in the HBR case study Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Movirtu Movirtu's is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Movirtu Movirtu's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Movirtu Movirtu's to focus more on services rather than just following the product oriented approach.
Capital Spending Reduction
– Even during the low interest decade, Movirtu Movirtu's 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 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 Movirtu Movirtu's supply chain. Even after few cautionary changes mentioned in the HBR case study - Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Movirtu Movirtu's 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, Movirtu Movirtu's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture 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, Movirtu Movirtu's 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. Movirtu Movirtu's 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.
Products dominated business model
– Even though Movirtu Movirtu's 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 - Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Movirtu Movirtu's products
– To increase the profitability and margins on the products, Movirtu Movirtu's needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Movirtu Movirtu's 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.
Opportunities Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture | 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 Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Movirtu Movirtu's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Movirtu Movirtu's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Movirtu Movirtu's can use these opportunities to build new business models that can help the communities that Movirtu Movirtu's operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Movirtu Movirtu's 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, Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Movirtu Movirtu's is facing challenges because of the dominance of functional experts in the organization. Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Movirtu Movirtu's in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Creating value in data economy
– The success of analytics program of Movirtu Movirtu's has opened avenues for new revenue streams for the organization in the industry. This can help Movirtu Movirtu's to build a more holistic ecosystem as suggested in the Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture case study. Movirtu Movirtu's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Movirtu Movirtu's 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 Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Movirtu Movirtu's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Building a culture of innovation
– managers at Movirtu Movirtu's 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 Strategy & Execution segment.
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 Movirtu Movirtu's in the consumer business. Now Movirtu Movirtu's can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Movirtu Movirtu's 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 Movirtu Movirtu's to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Movirtu Movirtu's can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Movirtu Movirtu's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture are -
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Movirtu Movirtu's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Movirtu Movirtu's needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Movirtu Movirtu's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Movirtu Movirtu's 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.
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
– Movirtu Movirtu's 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. Movirtu Movirtu's can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Consumer confidence and its impact on Movirtu Movirtu's 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture, Movirtu Movirtu's may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Shortening product life cycle
– it is one of the major threat that Movirtu Movirtu's is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Movirtu Movirtu's 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 Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture .
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. Movirtu Movirtu's 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.
Regulatory challenges
– Movirtu Movirtu's 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 Strategy & Execution industry regulations.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Movirtu Movirtu's in the Strategy & Execution sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture 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 Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture 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 Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture 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 Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture 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 Movirtu's Cloud Phone Service: Funding a Base-of-the-Pyramid Venture 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 Movirtu Movirtu's needs to make to build a sustainable competitive advantage.