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 - – there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, increasing commodity prices, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels, central banks are concerned over increasing inflation,
technology disruption, talent flight as more people leaving formal jobs, 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 -
Highly skilled collaborators
– Fahmy Jewellery 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 Azza Fahmy Jewellery: Going Online Post-revolution (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Fahmy Jewellery has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Fahmy Jewellery 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.
Training and development
– Fahmy Jewellery has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Azza Fahmy Jewellery: Going Online Post-revolution (A) 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.
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.
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.
High brand equity
– Fahmy Jewellery has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Fahmy Jewellery to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Fahmy Jewellery 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 recruit top talent
– Fahmy Jewellery is one of the leading recruiters in the industry. Managers in the Azza Fahmy Jewellery: Going Online Post-revolution (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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.
Operational resilience
– The operational resilience strategy in the Azza Fahmy Jewellery: Going Online Post-revolution (A) 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.
Diverse revenue streams
– Fahmy Jewellery is present in almost all the verticals within the industry. This has provided firm in Azza Fahmy Jewellery: Going Online Post-revolution (A) 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)
– 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.
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 -
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.
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 Fahmy Jewellery supply chain. Even after few cautionary changes mentioned in the HBR case study - Azza Fahmy Jewellery: Going Online Post-revolution (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Fahmy Jewellery vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Azza Fahmy Jewellery: Going Online Post-revolution (A), in the dynamic environment Fahmy Jewellery has struggled to respond to the nimble upstart competition. Fahmy Jewellery has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Azza Fahmy Jewellery: Going Online Post-revolution (A), 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.
Slow decision making process
– As mentioned earlier in the report, Fahmy Jewellery 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. Fahmy Jewellery 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.
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.
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.
Skills based hiring
– The stress on hiring functional specialists at Fahmy Jewellery 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.
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.
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.
Workers concerns about automation
– As automation is fast increasing in the segment, Fahmy Jewellery 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.
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 -
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.
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.
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.
Learning at scale
– Online learning technologies has now opened space for Fahmy Jewellery 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.
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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Fahmy Jewellery can use these opportunities to build new business models that can help the communities that Fahmy Jewellery operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Fahmy Jewellery 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, Azza Fahmy Jewellery: Going Online Post-revolution (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Fahmy Jewellery 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.
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.
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.
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 -
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) .
High dependence on third party suppliers
– Fahmy Jewellery 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Azza Fahmy Jewellery: Going Online Post-revolution (A), Fahmy Jewellery may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
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.
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. Fahmy Jewellery can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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.
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.
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.
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.
Consumer confidence and its impact on Fahmy Jewellery 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.
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.
Shortening product life cycle
– it is one of the major threat that Fahmy Jewellery is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.