Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market
Supplement to case IN1300. mfish is a case about global partnerships which target the bottom of the pyramid. This case focuses on mobile penetration and using a local partner to gain access to consumers, however this is not specific to mobile or fishing and can be applied across industries. One of Tone's main successes here was focusing on their core competencies, mobile app development, and using key partnerships to fill in their knowledge and competency gaps. Tone/mfish were able to monetize a solution, despite targeting this very low income sector by making a product that greatly increased the livelihood of it's consumers, which customers were willing to pay for. This case challenges students to think creatively about solving a problem in a low cost way, while also maintaining a customer centric focus. If the product doesn't solve problems for consumers, then there won't be high demand for it, so keeping a customer centric focus is key. In addition, a low cost solution is important when targeting this segment since their willingness to pay might be low on an absolute scale given their low level of income.
Swot Analysis of "Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market" written by Philip Parker, Katelyn Atherton includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mfish Low facing as an external strategic factors. Some of the topics covered in Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market case study are - Strategic Management Strategies, Emerging markets, Joint ventures, Marketing, Technology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market casestudy better are - – challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation,
increasing energy prices, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mfish Low, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mfish Low 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 Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market can be done for the following purposes –
1. Strategic planning using facts provided in Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market case study
2. Improving business portfolio management of Mfish Low
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 Mfish Low
Strengths Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mfish Low in Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market Harvard Business Review case study are -
Effective Research and Development (R&D)
– Mfish Low 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 Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Mfish Low
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mfish Low does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Mfish Low digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mfish Low 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
– Mfish Low has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mfish Low to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Mfish Low is present in almost all the verticals within the industry. This has provided firm in Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market 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.
Learning organization
- Mfish Low 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 Mfish Low is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Mfish Low is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Successful track record of launching new products
– Mfish Low has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mfish Low 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.
Analytics focus
– Mfish Low 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 Philip Parker, Katelyn Atherton 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.
Training and development
– Mfish Low has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market 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.
High switching costs
– The high switching costs that Mfish Low 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.
Low bargaining power of suppliers
– Suppliers of Mfish Low in the sector have low bargaining power. Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mfish Low to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market are -
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Mfish Low supply chain. Even after few cautionary changes mentioned in the HBR case study - Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mfish Low vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market, is just above the industry average. Mfish Low 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.
Low market penetration in new markets
– Outside its home market of Mfish Low, firm in the HBR case study Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Mfish Low is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Mfish Low needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mfish Low to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Mfish Low has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Mfish Low 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. Mfish Low 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mfish Low is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Mfish Low 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.
Skills based hiring
– The stress on hiring functional specialists at Mfish Low 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.
Slow to strategic competitive environment developments
– As Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market HBR case study mentions - Mfish Low 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.
Capital Spending Reduction
– Even during the low interest decade, Mfish Low 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.
Opportunities Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market | 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 Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market are -
Creating value in data economy
– The success of analytics program of Mfish Low has opened avenues for new revenue streams for the organization in the industry. This can help Mfish Low to build a more holistic ecosystem as suggested in the Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market case study. Mfish Low can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Mfish Low 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mfish Low 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, Mfish Low 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, Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Mfish Low can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mfish Low is facing challenges because of the dominance of functional experts in the organization. Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market 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.
Developing new processes and practices
– Mfish Low 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.
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 Mfish Low in the consumer business. Now Mfish Low can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Mfish Low 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mfish Low can use these opportunities to build new business models that can help the communities that Mfish Low operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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. Mfish Low can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Mfish Low 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.
Manufacturing automation
– Mfish Low 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.
Threats Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market 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 Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market, Mfish Low 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 .
Technology acceleration in Forth Industrial Revolution
– Mfish Low has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Mfish Low 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.
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. Mfish Low can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Increasing wage structure of Mfish Low
– 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 Mfish Low.
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. Mfish Low 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Mfish Low in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Consumer confidence and its impact on Mfish Low 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.
Environmental challenges
– Mfish Low 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. Mfish Low can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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 Mfish Low.
Stagnating economy with rate increase
– Mfish Low 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mfish Low 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 Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market .
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.
Weighted SWOT Analysis of Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market 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 Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market 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 Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market 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 Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market 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 Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market 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 Mfish Low needs to make to build a sustainable competitive advantage.
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You can download Excel Template of Case Study Solution & Analysis of Tone and mfish (B): Targeting Fishermen at the Bottom of the Pyramid in Indonesia's Mobile Market
