IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture

Amitabha needs to define the market strategy for IDEI, an NGO selling low-cost irrigation products to the bottom of the pyramid, to ensure sustainability (to make it as independent as possible of funding). The fundamental questions are how to set up the supply chain and what price to charge for the products.

Authors :: Annelies Deleersnyder, Philip Parker

Topics :: Strategy & Execution

Tags :: Market research, Social responsibility, Sustainability, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture" written by Annelies Deleersnyder, Philip Parker includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Pyramid Bottom facing as an external strategic factors. Some of the topics covered in IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture case study are - Strategic Management Strategies, Market research, Social responsibility, Sustainability and Strategy & Execution.

Some of the macro environment factors that can be used to understand the IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, etc

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Introduction to SWOT Analysis of IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Pyramid Bottom, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Pyramid Bottom 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture can be done for the following purposes –
1. Strategic planning using facts provided in IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture case study
2. Improving business portfolio management of Pyramid Bottom
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 Pyramid Bottom

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Strengths IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Pyramid Bottom in IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture Harvard Business Review case study are -

Superior customer experience

– The customer experience strategy of Pyramid Bottom in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

High switching costs

– The high switching costs that Pyramid Bottom has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.

Analytics focus

– Pyramid Bottom 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 Annelies Deleersnyder, Philip Parker 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.

High brand equity

– Pyramid Bottom has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Pyramid Bottom to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Ability to lead change in Strategy & Execution field

– Pyramid Bottom 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 Pyramid Bottom in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Highly skilled collaborators

– Pyramid Bottom 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 IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Digital Transformation in Strategy & Execution segment

- digital transformation varies from industry to industry. For Pyramid Bottom digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Pyramid Bottom 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.

Learning organization

- Pyramid Bottom 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 Pyramid Bottom is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Organizational Resilience of Pyramid Bottom

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Pyramid Bottom does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Low bargaining power of suppliers

– Suppliers of Pyramid Bottom in the sector have low bargaining power. IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Pyramid Bottom to manage not only supply disruptions but also source products at highly competitive prices.

Cross disciplinary teams

– Horizontal connected teams at the Pyramid Bottom 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.

Operational resilience

– The operational resilience strategy in the IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture 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.

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Weaknesses IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture are -

Increasing silos among functional specialists

– The organizational structure of Pyramid Bottom is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Pyramid Bottom needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Pyramid Bottom to focus more on services rather than just following the product oriented approach.

Products dominated business model

– Even though Pyramid Bottom 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 - IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture 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 Pyramid Bottom supply chain. Even after few cautionary changes mentioned in the HBR case study - IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Pyramid Bottom vulnerable to further global disruptions in South East Asia.

Slow decision making process

– As mentioned earlier in the report, Pyramid Bottom 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. Pyramid Bottom 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.

Aligning sales with marketing

– It come across in the case study IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture 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 IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture can leverage the sales team experience to cultivate customer relationships as Pyramid Bottom is planning to shift buying processes online.

Low market penetration in new markets

– Outside its home market of Pyramid Bottom, firm in the HBR case study IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

High bargaining power of channel partners

– Because of the regulatory requirements, Annelies Deleersnyder, Philip Parker suggests that, Pyramid Bottom is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.

Need for greater diversity

– Pyramid Bottom 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.

No frontier risks strategy

– After analyzing the HBR case study IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture, it seems that the employees of Pyramid Bottom 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.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Pyramid Bottom is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

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Opportunities IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture | 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 IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture are -

Lowering marketing communication costs

– 5G expansion will open new opportunities for Pyramid Bottom 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.

Building a culture of innovation

– managers at Pyramid Bottom 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.

Developing new processes and practices

– Pyramid Bottom can develop new processes and procedures in Strategy & Execution 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.

Loyalty marketing

– Pyramid Bottom 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.

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 Pyramid Bottom 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.

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. Pyramid Bottom can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Pyramid Bottom is facing challenges because of the dominance of functional experts in the organization. IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture 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.

Learning at scale

– Online learning technologies has now opened space for Pyramid Bottom 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.

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 Pyramid Bottom in the consumer business. Now Pyramid Bottom can target international markets with far fewer capital restrictions requirements than the existing system.

Manufacturing automation

– Pyramid Bottom 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.

Changes in consumer behavior post Covid-19

– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Pyramid Bottom 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. Pyramid Bottom 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.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Pyramid Bottom can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Pyramid Bottom 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, IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

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Threats IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture are -

Shortening product life cycle

– it is one of the major threat that Pyramid Bottom is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Stagnating economy with rate increase

– Pyramid Bottom 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.

Environmental challenges

– Pyramid Bottom 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. Pyramid Bottom can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.

High dependence on third party suppliers

– Pyramid Bottom 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.

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. Pyramid Bottom 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

– Pyramid Bottom 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 Pyramid Bottom in the Strategy & Execution sector and impact the bottomline of the organization.

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. Pyramid Bottom can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

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 Pyramid Bottom.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture, Pyramid Bottom 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 .

Consumer confidence and its impact on Pyramid Bottom 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.

Technology acceleration in Forth Industrial Revolution

– Pyramid Bottom has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Pyramid Bottom needs to keep up with the evolution of technology in the Strategy & Execution 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.

Increasing wage structure of Pyramid Bottom

– 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 Pyramid Bottom.

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Weighted SWOT Analysis of IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture 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 IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture 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 IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture 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 IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture 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 IDE-India (A): Bringing Valuable Water to the Bottom of the Pyramid in Agriculture 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 Pyramid Bottom needs to make to build a sustainable competitive advantage.

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