Case Study Description of Azza Fahmy Jewellery: Going Online Post-revolution (A)
This is the fourth case in the Azza Fahmy series. This case and the three others in this series (9B13M097, 9B13M098 and 9B13M099) can be used together or on a standalone basis.Azza Fahmy Jewellery: Going Online Post-revolution (B) (9B14M024) is a supplement to this case.This case series features a female Egyptian entrepreneur who faces the challenge of developing her self-titled jewellery brand. This case describes the changes that have occurred in the external environment and their effect on strategy implementation. The Egyptian Revolution on January 2011 has forced the entrepreneur to re-evaluate her strategy and make the necessary changes. The use of social media, which was a catalyst of the revolution and also affected its outcome, presents a great opportunity for expanding her business even further. Author Marina Apaydin and Leila Khauli are affiliated with American University of Beirut. Author Hend Mostafa is affiliated with American University of Cairo.
Swot Analysis of "Azza Fahmy Jewellery: Going Online Post-revolution (A)" written by Marina Apaydin, Hend Mostafa, Leila Khauli includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Fahmy Jewellery facing as an external strategic factors. Some of the topics covered in Azza Fahmy Jewellery: Going Online Post-revolution (A) case study are - Strategic Management Strategies, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Azza Fahmy Jewellery: Going Online Post-revolution (A) casestudy better are - – central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, increasing energy prices, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs,
increasing transportation and logistics costs, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Azza Fahmy Jewellery: Going Online Post-revolution (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Azza Fahmy Jewellery: Going Online Post-revolution (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Fahmy Jewellery, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Fahmy Jewellery 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 Azza Fahmy Jewellery: Going Online Post-revolution (A) can be done for the following purposes –
1. Strategic planning using facts provided in Azza Fahmy Jewellery: Going Online Post-revolution (A) case study
2. Improving business portfolio management of Fahmy Jewellery
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 Fahmy Jewellery
Strengths Azza Fahmy Jewellery: Going Online Post-revolution (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Fahmy Jewellery in Azza Fahmy Jewellery: Going Online Post-revolution (A) Harvard Business Review case study are -
High switching costs
– The high switching costs that Fahmy Jewellery 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.
Learning organization
- Fahmy Jewellery 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 Fahmy Jewellery is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Azza Fahmy Jewellery: Going Online Post-revolution (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Fahmy Jewellery is one of the most innovative firm in sector. Manager in Azza Fahmy Jewellery: Going Online Post-revolution (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Fahmy Jewellery in the sector have low bargaining power. Azza Fahmy Jewellery: Going Online Post-revolution (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Fahmy Jewellery to manage not only supply disruptions but also source products at highly competitive prices.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Fahmy Jewellery digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Fahmy Jewellery 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.
Effective Research and Development (R&D)
– Fahmy Jewellery 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 Azza Fahmy Jewellery: Going Online Post-revolution (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Fahmy Jewellery is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Fahmy Jewellery
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Fahmy Jewellery does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Strategy & Execution industry
– Azza Fahmy Jewellery: Going Online Post-revolution (A) firm has clearly differentiated products in the market place. This has enabled Fahmy Jewellery to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Fahmy Jewellery to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Fahmy Jewellery in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Fahmy Jewellery 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 Marina Apaydin, Hend Mostafa, Leila Khauli 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.
Ability to lead change in Strategy & Execution field
– Fahmy Jewellery 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 Fahmy Jewellery in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Azza Fahmy Jewellery: Going Online Post-revolution (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Azza Fahmy Jewellery: Going Online Post-revolution (A) are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Fahmy Jewellery is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Azza Fahmy Jewellery: Going Online Post-revolution (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Azza Fahmy Jewellery: Going Online Post-revolution (A), it seems that the employees of Fahmy Jewellery 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Azza Fahmy Jewellery: Going Online Post-revolution (A), is just above the industry average. Fahmy Jewellery needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Aligning sales with marketing
– It come across in the case study Azza Fahmy Jewellery: Going Online Post-revolution (A) 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 Azza Fahmy Jewellery: Going Online Post-revolution (A) can leverage the sales team experience to cultivate customer relationships as Fahmy Jewellery is planning to shift buying processes online.
Need for greater diversity
– Fahmy Jewellery 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.
Low market penetration in new markets
– Outside its home market of Fahmy Jewellery, firm in the HBR case study Azza Fahmy Jewellery: Going Online Post-revolution (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Fahmy Jewellery is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Fahmy Jewellery needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Fahmy Jewellery to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Fahmy Jewellery 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 - Azza Fahmy Jewellery: Going Online Post-revolution (A) should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Azza Fahmy Jewellery: Going Online Post-revolution (A) HBR case study mentions - Fahmy Jewellery 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.
Lack of clear differentiation of Fahmy Jewellery products
– To increase the profitability and margins on the products, Fahmy Jewellery needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Azza Fahmy Jewellery: Going Online Post-revolution (A) 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 Fahmy Jewellery has relatively successful track record of launching new products.
Opportunities Azza Fahmy Jewellery: Going Online Post-revolution (A) | 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 Azza Fahmy Jewellery: Going Online Post-revolution (A) are -
Leveraging digital technologies
– Fahmy Jewellery 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.
Developing new processes and practices
– Fahmy Jewellery 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Fahmy Jewellery in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Fahmy Jewellery can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Fahmy Jewellery can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Fahmy Jewellery can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Azza Fahmy Jewellery: Going Online Post-revolution (A) 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.
Building a culture of innovation
– managers at Fahmy Jewellery 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.
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. Fahmy Jewellery can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Fahmy Jewellery is facing challenges because of the dominance of functional experts in the organization. Azza Fahmy Jewellery: Going Online Post-revolution (A) 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.
Using analytics as competitive advantage
– Fahmy Jewellery 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 Azza Fahmy Jewellery: Going Online Post-revolution (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Fahmy Jewellery to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Fahmy Jewellery in the consumer business. Now Fahmy Jewellery can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Fahmy Jewellery 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.
Creating value in data economy
– The success of analytics program of Fahmy Jewellery has opened avenues for new revenue streams for the organization in the industry. This can help Fahmy Jewellery to build a more holistic ecosystem as suggested in the Azza Fahmy Jewellery: Going Online Post-revolution (A) case study. Fahmy Jewellery can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Azza Fahmy Jewellery: Going Online Post-revolution (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Azza Fahmy Jewellery: Going Online Post-revolution (A) are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Fahmy Jewellery 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.
Environmental challenges
– Fahmy Jewellery 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. Fahmy Jewellery can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Regulatory challenges
– Fahmy Jewellery 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Fahmy Jewellery 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 Azza Fahmy Jewellery: Going Online Post-revolution (A) .
Increasing wage structure of Fahmy Jewellery
– 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 Fahmy Jewellery.
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.
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 Fahmy Jewellery in the Strategy & Execution sector and impact the bottomline of the organization.
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. Fahmy Jewellery needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Fahmy Jewellery business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Fahmy Jewellery has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Fahmy Jewellery needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Fahmy Jewellery 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Fahmy Jewellery with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Fahmy Jewellery 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.
Weighted SWOT Analysis of Azza Fahmy Jewellery: Going Online Post-revolution (A) 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 Azza Fahmy Jewellery: Going Online Post-revolution (A) 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 Azza Fahmy Jewellery: Going Online Post-revolution (A) 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 Azza Fahmy Jewellery: Going Online Post-revolution (A) 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 Azza Fahmy Jewellery: Going Online Post-revolution (A) 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 Fahmy Jewellery needs to make to build a sustainable competitive advantage.
