Case Study Description of Ideas Kitchen's Expansion Fix
Ideas Kitchen is a medium-sized kitchen maker that specializes in customizing the modular kitchen. As a result, it has built a loyal customer base. Business has been relatively good for Ideas Kitchen, and the company has been doing well financially. It has been capitalizing on the burgeoning growth of the modular kitchen market in India. However, several foreign players have begun entering the Indian market and almost all of them have been expanding at a rapid pace either through franchise models or by opening showrooms in a number of cities. The founder of Ideas Kitchen is in a dilemma about whether to stay a niche business or to take a bold step toward expanding product range and geographical reach. Jayanthi Ranjan and Sandeep Puri are affiliated with Institute of Management Technology, Ghaziabad.
Swot Analysis of "Ideas Kitchen's Expansion Fix" written by Jayanthi Ranjan, Sandeep Puri includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Kitchen Ideas facing as an external strategic factors. Some of the topics covered in Ideas Kitchen's Expansion Fix case study are - Strategic Management Strategies, Marketing, Workspaces and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Ideas Kitchen's Expansion Fix casestudy better are - – cloud computing is disrupting traditional business models, there is backlash against globalization, supply chains are disrupted by pandemic , increasing commodity prices, geopolitical disruptions, central banks are concerned over increasing inflation, increasing transportation and logistics costs,
technology disruption, increasing energy prices, etc
Introduction to SWOT Analysis of Ideas Kitchen's Expansion Fix
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Ideas Kitchen's Expansion Fix case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Kitchen Ideas, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Kitchen Ideas 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 Ideas Kitchen's Expansion Fix can be done for the following purposes –
1. Strategic planning using facts provided in Ideas Kitchen's Expansion Fix case study
2. Improving business portfolio management of Kitchen Ideas
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 Kitchen Ideas
Strengths Ideas Kitchen's Expansion Fix | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Kitchen Ideas in Ideas Kitchen's Expansion Fix Harvard Business Review case study are -
Innovation driven organization
– Kitchen Ideas is one of the most innovative firm in sector. Manager in Ideas Kitchen's Expansion Fix Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Kitchen Ideas 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 Ideas Kitchen's Expansion Fix - 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 recruit top talent
– Kitchen Ideas is one of the leading recruiters in the industry. Managers in the Ideas Kitchen's Expansion Fix are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Kitchen Ideas is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Strategy & Execution industry
– Ideas Kitchen's Expansion Fix firm has clearly differentiated products in the market place. This has enabled Kitchen Ideas to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Kitchen Ideas to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Ideas Kitchen's Expansion Fix 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
– Kitchen Ideas 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 Jayanthi Ranjan, Sandeep Puri 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.
Superior customer experience
– The customer experience strategy of Kitchen Ideas in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Strategy & Execution field
– Kitchen Ideas 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 Kitchen Ideas in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Kitchen Ideas in the sector have low bargaining power. Ideas Kitchen's Expansion Fix has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Kitchen Ideas to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Kitchen Ideas has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Ideas Kitchen's Expansion Fix 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.
Organizational Resilience of Kitchen Ideas
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Kitchen Ideas does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Ideas Kitchen's Expansion Fix | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ideas Kitchen's Expansion Fix are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Ideas Kitchen's Expansion Fix 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 Kitchen Ideas has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Kitchen Ideas 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Ideas Kitchen's Expansion Fix, it seems that the employees of Kitchen Ideas 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, Jayanthi Ranjan, Sandeep Puri suggests that, Kitchen Ideas 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.
Low market penetration in new markets
– Outside its home market of Kitchen Ideas, firm in the HBR case study Ideas Kitchen's Expansion Fix needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Ideas Kitchen's Expansion Fix 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 Kitchen Ideas 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Kitchen Ideas 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.
Increasing silos among functional specialists
– The organizational structure of Kitchen Ideas is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Kitchen Ideas needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Kitchen Ideas to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Ideas Kitchen's Expansion Fix 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 Ideas Kitchen's Expansion Fix can leverage the sales team experience to cultivate customer relationships as Kitchen Ideas is planning to shift buying processes online.
Need for greater diversity
– Kitchen Ideas has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Skills based hiring
– The stress on hiring functional specialists at Kitchen Ideas 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.
Opportunities Ideas Kitchen's Expansion Fix | 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 Ideas Kitchen's Expansion Fix 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 Kitchen Ideas 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Kitchen Ideas 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.
Better consumer reach
– The expansion of the 5G network will help Kitchen Ideas to increase its market reach. Kitchen Ideas 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.
Loyalty marketing
– Kitchen Ideas has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Creating value in data economy
– The success of analytics program of Kitchen Ideas has opened avenues for new revenue streams for the organization in the industry. This can help Kitchen Ideas to build a more holistic ecosystem as suggested in the Ideas Kitchen's Expansion Fix case study. Kitchen Ideas can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Kitchen Ideas is facing challenges because of the dominance of functional experts in the organization. Ideas Kitchen's Expansion Fix 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.
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 Kitchen Ideas in the consumer business. Now Kitchen Ideas can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Kitchen Ideas 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.
Learning at scale
– Online learning technologies has now opened space for Kitchen Ideas 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Kitchen Ideas can use these opportunities to build new business models that can help the communities that Kitchen Ideas operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Kitchen Ideas 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Kitchen Ideas 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, Ideas Kitchen's Expansion Fix, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Kitchen Ideas 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 Ideas Kitchen's Expansion Fix External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Ideas Kitchen's Expansion Fix are -
High dependence on third party suppliers
– Kitchen Ideas 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Kitchen Ideas 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.
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. Kitchen Ideas can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– Kitchen Ideas 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. Kitchen Ideas can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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.
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. Kitchen Ideas 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 acceleration in Forth Industrial Revolution
– Kitchen Ideas has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Kitchen Ideas 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.
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. Kitchen Ideas needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Kitchen Ideas is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Kitchen Ideas in the Strategy & Execution sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Kitchen Ideas 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.
Consumer confidence and its impact on Kitchen Ideas 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.
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 Kitchen Ideas.
Weighted SWOT Analysis of Ideas Kitchen's Expansion Fix 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 Ideas Kitchen's Expansion Fix 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 Ideas Kitchen's Expansion Fix 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 Ideas Kitchen's Expansion Fix 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 Ideas Kitchen's Expansion Fix 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 Kitchen Ideas needs to make to build a sustainable competitive advantage.
