IDE-India (B): To the Bottom of the Pyramid in Agriculture SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of IDE-India (B): 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.
Swot Analysis of "IDE-India (B): 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 (B): 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 (B): To the Bottom of the Pyramid in Agriculture casestudy better are - – supply chains are disrupted by pandemic , wage bills are increasing, there is increasing trade war between United States & China, customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google,
central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of IDE-India (B): 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 (B): 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.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of IDE-India (B): To the Bottom of the Pyramid in Agriculture can be done for the following purposes –
1. Strategic planning using facts provided in IDE-India (B): 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
Strengths IDE-India (B): 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 (B): To the Bottom of the Pyramid in Agriculture Harvard Business Review case study are -
Innovation driven organization
– Pyramid Bottom is one of the most innovative firm in sector. Manager in IDE-India (B): To the Bottom of the Pyramid in Agriculture Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
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.
Strong track record of project management
– Pyramid Bottom is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– 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 (B): 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.
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.
Ability to recruit top talent
– Pyramid Bottom is one of the leading recruiters in the industry. Managers in the IDE-India (B): To the Bottom of the Pyramid in Agriculture are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Pyramid Bottom has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in IDE-India (B): To the Bottom of the Pyramid in Agriculture Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Operational resilience
– The operational resilience strategy in the IDE-India (B): 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.
Effective Research and Development (R&D)
– Pyramid Bottom has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study IDE-India (B): To the Bottom of the Pyramid in Agriculture - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
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.
Weaknesses IDE-India (B): 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 (B): To the Bottom of the Pyramid in Agriculture are -
Low market penetration in new markets
– Outside its home market of Pyramid Bottom, firm in the HBR case study IDE-India (B): To the Bottom of the Pyramid in Agriculture needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study IDE-India (B): To the Bottom of the Pyramid in Agriculture, is just above the industry average. Pyramid Bottom needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Aligning sales with marketing
– It come across in the case study IDE-India (B): 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 (B): 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study IDE-India (B): To the Bottom of the Pyramid in Agriculture, in the dynamic environment Pyramid Bottom has struggled to respond to the nimble upstart competition. Pyramid Bottom has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
Slow to strategic competitive environment developments
– As IDE-India (B): To the Bottom of the Pyramid in Agriculture HBR case study mentions - Pyramid Bottom 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.
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.
Lack of clear differentiation of Pyramid Bottom products
– To increase the profitability and margins on the products, Pyramid Bottom needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
Skills based hiring
– The stress on hiring functional specialists at Pyramid Bottom has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study IDE-India (B): To the Bottom of the Pyramid in Agriculture 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 Pyramid Bottom 's lucrative customers.
Opportunities IDE-India (B): 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 (B): To the Bottom of the Pyramid in Agriculture are -
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.
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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Pyramid Bottom can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
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.
Using analytics as competitive advantage
– Pyramid Bottom 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 IDE-India (B): To the Bottom of the Pyramid in Agriculture - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Pyramid Bottom to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Pyramid Bottom in the consumer business. Now Pyramid Bottom can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Pyramid Bottom to increase its market reach. Pyramid Bottom 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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Pyramid Bottom can use these opportunities to build new business models that can help the communities that Pyramid Bottom operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Pyramid Bottom 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 Pyramid Bottom to hire the very best people irrespective of their geographical location.
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.
Threats IDE-India (B): 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 (B): To the Bottom of the Pyramid in Agriculture 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 IDE-India (B): 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.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Pyramid Bottom 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 IDE-India (B): To the Bottom of the Pyramid in Agriculture .
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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
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.
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.
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.
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.
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.
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.
Weighted SWOT Analysis of IDE-India (B): 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 (B): 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 (B): 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 (B): 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 (B): 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.