Oxigen: Nurturing the Mobile Payment Ecosystem in India SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Oxigen: Nurturing the Mobile Payment Ecosystem in India
In 2013, Oxigen Services India Pvt. Ltd. launched a money transfer service integrated with the infrastructure of the National Payment Corporation of India. The Oxigen Wallet, India's first non-bank wallet, allowed instant money transfers to and from any bank account over an extensive ecosystem, with a large retail presence across India using point-of-sale terminals. Oxigen was a major provider of bill payment and merchant payment services, with complete interoperability between mobile wallets and bank accounts. But newer mobile wallet players were focused on alternative strategies, and were showing rapid growth in the number of subscribers thanks to innovative services, extensive sales promotions, and varied marketing initiatives. Oxigen wanted to be sure that it was using the capabilities of the ecosystem effectively within the context of changing market dynamics. Should Oxigen continue to invest significantly in ecosystem development, as it had been doing, or focus instead on a sales-and-promotion-driven growth strategy? In the changing market, what were Oxigen's best options for success? Meeta Dasgupta is affiliated with Management Development Institute. M.P. Jaiswal is affiliated with Management Development Institute.
Authors :: Sandip Mukhopadhyay, Meeta Dasgupta, M. P. Jaiswal
Swot Analysis of "Oxigen: Nurturing the Mobile Payment Ecosystem in India" written by Sandip Mukhopadhyay, Meeta Dasgupta, M. P. Jaiswal includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Oxigen Wallet facing as an external strategic factors. Some of the topics covered in Oxigen: Nurturing the Mobile Payment Ecosystem in India case study are - Strategic Management Strategies, Mobile and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Oxigen: Nurturing the Mobile Payment Ecosystem in India casestudy better are - – there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, technology disruption, central banks are concerned over increasing inflation, supply chains are disrupted by pandemic , geopolitical disruptions,
customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Oxigen: Nurturing the Mobile Payment Ecosystem in India
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Oxigen: Nurturing the Mobile Payment Ecosystem in India case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Oxigen Wallet, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Oxigen Wallet 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 Oxigen: Nurturing the Mobile Payment Ecosystem in India can be done for the following purposes –
1. Strategic planning using facts provided in Oxigen: Nurturing the Mobile Payment Ecosystem in India case study
2. Improving business portfolio management of Oxigen Wallet
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 Oxigen Wallet
Strengths Oxigen: Nurturing the Mobile Payment Ecosystem in India | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Oxigen Wallet in Oxigen: Nurturing the Mobile Payment Ecosystem in India Harvard Business Review case study are -
Organizational Resilience of Oxigen Wallet
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Oxigen Wallet 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 Oxigen Wallet digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Oxigen Wallet 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.
Highly skilled collaborators
– Oxigen Wallet 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 Oxigen: Nurturing the Mobile Payment Ecosystem in India HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Oxigen Wallet has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Oxigen: Nurturing the Mobile Payment Ecosystem in India 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 Oxigen: Nurturing the Mobile Payment Ecosystem in India 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.
High brand equity
– Oxigen Wallet has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Oxigen Wallet to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Oxigen Wallet 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 Oxigen: Nurturing the Mobile Payment Ecosystem in India - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High switching costs
– The high switching costs that Oxigen Wallet 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.
Strong track record of project management
– Oxigen Wallet 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
– Oxigen Wallet has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Oxigen Wallet 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.
Cross disciplinary teams
– Horizontal connected teams at the Oxigen Wallet 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.
Ability to lead change in Strategy & Execution field
– Oxigen Wallet 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 Oxigen Wallet in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Oxigen: Nurturing the Mobile Payment Ecosystem in India | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Oxigen: Nurturing the Mobile Payment Ecosystem in India are -
Slow to strategic competitive environment developments
– As Oxigen: Nurturing the Mobile Payment Ecosystem in India HBR case study mentions - Oxigen Wallet 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.
Products dominated business model
– Even though Oxigen Wallet 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 - Oxigen: Nurturing the Mobile Payment Ecosystem in India should strive to include more intangible value offerings along with its core products and services.
No frontier risks strategy
– After analyzing the HBR case study Oxigen: Nurturing the Mobile Payment Ecosystem in India, 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Sandip Mukhopadhyay, Meeta Dasgupta, M. P. Jaiswal suggests that, Oxigen Wallet 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 harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Oxigen Wallet is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Oxigen: Nurturing the Mobile Payment Ecosystem in India can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, firm in the HBR case study Oxigen: Nurturing the Mobile Payment Ecosystem in India 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 Oxigen Wallet 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Oxigen Wallet 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.
Slow decision making process
– As mentioned earlier in the report, Oxigen Wallet 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. Oxigen Wallet 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Oxigen: Nurturing the Mobile Payment Ecosystem in India 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 Oxigen Wallet has relatively successful track record of launching new products.
Lack of clear differentiation of Oxigen Wallet products
– To increase the profitability and margins on the products, Oxigen Wallet needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Oxigen Wallet has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Opportunities Oxigen: Nurturing the Mobile Payment Ecosystem in India | 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 Oxigen: Nurturing the Mobile Payment Ecosystem in India are -
Using analytics as competitive advantage
– Oxigen Wallet 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 Oxigen: Nurturing the Mobile Payment Ecosystem in India - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Oxigen Wallet to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Oxigen Wallet can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Oxigen: Nurturing the Mobile Payment Ecosystem in India 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.
Learning at scale
– Online learning technologies has now opened space for Oxigen Wallet 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.
Creating value in data economy
– The success of analytics program of Oxigen Wallet has opened avenues for new revenue streams for the organization in the industry. This can help Oxigen Wallet to build a more holistic ecosystem as suggested in the Oxigen: Nurturing the Mobile Payment Ecosystem in India case study. Oxigen Wallet can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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, Oxigen Wallet can use these opportunities to build new business models that can help the communities that Oxigen Wallet operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Developing new processes and practices
– Oxigen Wallet 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.
Manufacturing automation
– Oxigen Wallet 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.
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 Oxigen Wallet 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.
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 Oxigen Wallet in the consumer business. Now Oxigen Wallet can target international markets with far fewer capital restrictions requirements than the existing system.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Oxigen Wallet is facing challenges because of the dominance of functional experts in the organization. Oxigen: Nurturing the Mobile Payment Ecosystem in India 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Oxigen Wallet can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Oxigen Wallet 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Oxigen Wallet 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, Oxigen: Nurturing the Mobile Payment Ecosystem in India, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Oxigen: Nurturing the Mobile Payment Ecosystem in India External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Oxigen: Nurturing the Mobile Payment Ecosystem in India are -
Consumer confidence and its impact on Oxigen Wallet 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.
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. Oxigen Wallet 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.
Technology acceleration in Forth Industrial Revolution
– Oxigen Wallet has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Oxigen Wallet 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Oxigen Wallet 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.
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. Oxigen Wallet 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.
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.
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 Oxigen Wallet.
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. Oxigen Wallet needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Regulatory challenges
– Oxigen Wallet 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.
Stagnating economy with rate increase
– Oxigen Wallet 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
– Oxigen Wallet 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. Oxigen Wallet can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Oxigen Wallet 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 Oxigen: Nurturing the Mobile Payment Ecosystem in India .
Weighted SWOT Analysis of Oxigen: Nurturing the Mobile Payment Ecosystem in India 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 Oxigen: Nurturing the Mobile Payment Ecosystem in India 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 Oxigen: Nurturing the Mobile Payment Ecosystem in India 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 Oxigen: Nurturing the Mobile Payment Ecosystem in India 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 Oxigen: Nurturing the Mobile Payment Ecosystem in India 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 Oxigen Wallet needs to make to build a sustainable competitive advantage.
