Allianz Turkey: Focus on the Customer (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Allianz Turkey: Focus on the Customer (B)
At the age of 39, Solmaz AltA?n took over the helm at Allianz Turkey. Solmaz quickly realized that, although the insurance market was thinly penetrated in Turkey, the company was operating in a very competitive environment with pressure on prices and, hence, cost control. Consequently, customer satisfaction was suffering. Despite the growing Turkish economy and a favorable regulatory environment, Solmaz was struggling to grow the company without further sacrificing customer satisfaction or profitability. Used as part of a course on service excellence, the case provides an insurance context in which to explore the link between customer satisfaction and competitive performance and challenges the students to ponder the extent of the relationship between customer satisfaction and financial performance. In the (A) case, the Allianz Turkey executives focus their initial efforts on the claims process of the automobile insurance business-a lowly rated segment of the insurance industry by their policyholders. They begin by creating a map of the customer experience and then doing extensive consumer research to determine what really matters to the policyholder. The insights gleaned from the detailed consumer analysis are quite different than the original beliefs of the management team. Students must devise a new customer service model for the claims process based upon the customer analysis. The (B) case describes the new customer service model for the claims process and the resulting increase in customer satisfaction as measured by the Net Promoter Score (NPS) metric. Students must first decide whether the initial effort is a success and then develop a plan for the future.
Swot Analysis of "Allianz Turkey: Focus on the Customer (B)" written by W. Earl Sasser Jr., Gamze Yucaoglu includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Customer Solmaz facing as an external strategic factors. Some of the topics covered in Allianz Turkey: Focus on the Customer (B) case study are - Strategic Management Strategies, Customer service, Customers, Emerging markets, Supply chain and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Allianz Turkey: Focus on the Customer (B) casestudy better are - – central banks are concerned over increasing inflation, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, technology disruption, talent flight as more people leaving formal jobs, increasing commodity prices,
geopolitical disruptions, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of Allianz Turkey: Focus on the Customer (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Allianz Turkey: Focus on the Customer (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Customer Solmaz, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Customer Solmaz 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 Allianz Turkey: Focus on the Customer (B) can be done for the following purposes –
1. Strategic planning using facts provided in Allianz Turkey: Focus on the Customer (B) case study
2. Improving business portfolio management of Customer Solmaz
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 Customer Solmaz
Strengths Allianz Turkey: Focus on the Customer (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Customer Solmaz in Allianz Turkey: Focus on the Customer (B) Harvard Business Review case study are -
Ability to recruit top talent
– Customer Solmaz is one of the leading recruiters in the industry. Managers in the Allianz Turkey: Focus on the Customer (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Customer Solmaz 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 Customer Solmaz is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Allianz Turkey: Focus on the Customer (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Customer Solmaz
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Customer Solmaz does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Customer Solmaz is present in almost all the verticals within the industry. This has provided firm in Allianz Turkey: Focus on the Customer (B) 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.
Effective Research and Development (R&D)
– Customer Solmaz 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 Allianz Turkey: Focus on the Customer (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to lead change in Strategy & Execution field
– Customer Solmaz 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 Customer Solmaz in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Customer Solmaz in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Customer Solmaz digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Customer Solmaz 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.
Low bargaining power of suppliers
– Suppliers of Customer Solmaz in the sector have low bargaining power. Allianz Turkey: Focus on the Customer (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Customer Solmaz to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Allianz Turkey: Focus on the Customer (B) 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.
Analytics focus
– Customer Solmaz 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 W. Earl Sasser Jr., Gamze Yucaoglu 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Allianz Turkey: Focus on the Customer (B) firm has clearly differentiated products in the market place. This has enabled Customer Solmaz to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Customer Solmaz to invest into research and development (R&D) and innovation.
Weaknesses Allianz Turkey: Focus on the Customer (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Allianz Turkey: Focus on the Customer (B) are -
Slow to strategic competitive environment developments
– As Allianz Turkey: Focus on the Customer (B) HBR case study mentions - Customer Solmaz 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 to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Customer Solmaz is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Allianz Turkey: Focus on the Customer (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Allianz Turkey: Focus on the Customer (B) 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 Allianz Turkey: Focus on the Customer (B) can leverage the sales team experience to cultivate customer relationships as Customer Solmaz is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Allianz Turkey: Focus on the Customer (B), it seems that the employees of Customer Solmaz 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.
High bargaining power of channel partners
– Because of the regulatory requirements, W. Earl Sasser Jr., Gamze Yucaoglu suggests that, Customer Solmaz 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.
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 Customer Solmaz supply chain. Even after few cautionary changes mentioned in the HBR case study - Allianz Turkey: Focus on the Customer (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Customer Solmaz vulnerable to further global disruptions in South East Asia.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Allianz Turkey: Focus on the Customer (B) 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 Customer Solmaz has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Customer Solmaz 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. Customer Solmaz 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 operating costs
– Compare to the competitors, firm in the HBR case study Allianz Turkey: Focus on the Customer (B) 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 Customer Solmaz 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Customer Solmaz is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Customer Solmaz needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Customer Solmaz to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Customer Solmaz 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 - Allianz Turkey: Focus on the Customer (B) should strive to include more intangible value offerings along with its core products and services.
Opportunities Allianz Turkey: Focus on the Customer (B) | 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 Allianz Turkey: Focus on the Customer (B) are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Customer Solmaz 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.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Customer Solmaz can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Customer Solmaz has opened avenues for new revenue streams for the organization in the industry. This can help Customer Solmaz to build a more holistic ecosystem as suggested in the Allianz Turkey: Focus on the Customer (B) case study. Customer Solmaz can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Customer Solmaz 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, Allianz Turkey: Focus on the Customer (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Customer Solmaz 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 Allianz Turkey: Focus on the Customer (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Customer Solmaz to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Customer Solmaz to increase its market reach. Customer Solmaz 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 Customer Solmaz 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Customer Solmaz 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 Customer Solmaz to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Customer Solmaz 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 Customer Solmaz in the consumer business. Now Customer Solmaz can target international markets with far fewer capital restrictions requirements than the existing system.
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. Customer Solmaz can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Customer Solmaz 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. Customer Solmaz 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. Customer Solmaz 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.
Threats Allianz Turkey: Focus on the Customer (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Allianz Turkey: Focus on the Customer (B) are -
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 Customer Solmaz.
Regulatory challenges
– Customer Solmaz 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.
High dependence on third party suppliers
– Customer Solmaz 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Customer Solmaz with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Customer Solmaz can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Customer Solmaz 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.
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 Customer Solmaz in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing wage structure of Customer Solmaz
– 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 Customer Solmaz.
Stagnating economy with rate increase
– Customer Solmaz 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.
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 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.
Technology acceleration in Forth Industrial Revolution
– Customer Solmaz has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Customer Solmaz 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.
Consumer confidence and its impact on Customer Solmaz 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.
Weighted SWOT Analysis of Allianz Turkey: Focus on the Customer (B) 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 Allianz Turkey: Focus on the Customer (B) 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 Allianz Turkey: Focus on the Customer (B) 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 Allianz Turkey: Focus on the Customer (B) 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 Allianz Turkey: Focus on the Customer (B) 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 Customer Solmaz needs to make to build a sustainable competitive advantage.
