Case Study Description of Azza Fahmy Jewellery: Going Online Post Revolution (B)
Supplement for W14069 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 (B)" written by Marina Apaydin, Hend Mostafa, Leila Khauli includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that W14069 Khauli facing as an external strategic factors. Some of the topics covered in Azza Fahmy Jewellery: Going Online Post Revolution (B) 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 (B) casestudy better are - – central banks are concerned over increasing inflation, there is backlash against globalization, there is increasing trade war between United States & China, increasing household debt because of falling income levels, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs,
increasing commodity prices, technology disruption, etc
Introduction to SWOT Analysis of Azza Fahmy Jewellery: Going Online Post Revolution (B)
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 (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the W14069 Khauli, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which W14069 Khauli 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 (B) can be done for the following purposes –
1. Strategic planning using facts provided in Azza Fahmy Jewellery: Going Online Post Revolution (B) case study
2. Improving business portfolio management of W14069 Khauli
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 W14069 Khauli
Strengths Azza Fahmy Jewellery: Going Online Post Revolution (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of W14069 Khauli in Azza Fahmy Jewellery: Going Online Post Revolution (B) Harvard Business Review case study are -
Analytics focus
– W14069 Khauli 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 recruit top talent
– W14069 Khauli is one of the leading recruiters in the industry. Managers in the Azza Fahmy Jewellery: Going Online Post Revolution (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.
Strong track record of project management
– W14069 Khauli is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of W14069 Khauli in the sector have low bargaining power. Azza Fahmy Jewellery: Going Online Post Revolution (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps W14069 Khauli to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– W14069 Khauli is one of the most innovative firm in sector. Manager in Azza Fahmy Jewellery: Going Online Post Revolution (B) 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)
– W14069 Khauli 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 (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.
High brand equity
– W14069 Khauli has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled W14069 Khauli to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Strategy & Execution industry
– Azza Fahmy Jewellery: Going Online Post Revolution (B) firm has clearly differentiated products in the market place. This has enabled W14069 Khauli to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped W14069 Khauli to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– W14069 Khauli has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. W14069 Khauli 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.
Operational resilience
– The operational resilience strategy in the Azza Fahmy Jewellery: Going Online Post Revolution (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.
Organizational Resilience of W14069 Khauli
– The covid-19 pandemic has put organizational resilience at the centre of everthing that W14069 Khauli does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– W14069 Khauli 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 (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Azza Fahmy Jewellery: Going Online Post Revolution (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Azza Fahmy Jewellery: Going Online Post Revolution (B) are -
No frontier risks strategy
– After analyzing the HBR case study Azza Fahmy Jewellery: Going Online Post Revolution (B), 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.
Products dominated business model
– Even though W14069 Khauli 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 (B) should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, W14069 Khauli has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Azza Fahmy Jewellery: Going Online Post Revolution (B), is just above the industry average. W14069 Khauli 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Azza Fahmy Jewellery: Going Online Post Revolution (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 W14069 Khauli 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, W14069 Khauli 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.
Need for greater diversity
– W14069 Khauli 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.
Workers concerns about automation
– As automation is fast increasing in the segment, W14069 Khauli 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.
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 W14069 Khauli supply chain. Even after few cautionary changes mentioned in the HBR case study - Azza Fahmy Jewellery: Going Online Post Revolution (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left W14069 Khauli vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, W14069 Khauli 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. W14069 Khauli 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 cash cycle compare to competitors
W14069 Khauli has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Opportunities Azza Fahmy Jewellery: Going Online Post Revolution (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 Azza Fahmy Jewellery: Going Online Post Revolution (B) are -
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. W14069 Khauli can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– W14069 Khauli can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Azza Fahmy Jewellery: Going Online Post Revolution (B) 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.
Creating value in data economy
– The success of analytics program of W14069 Khauli has opened avenues for new revenue streams for the organization in the industry. This can help W14069 Khauli to build a more holistic ecosystem as suggested in the Azza Fahmy Jewellery: Going Online Post Revolution (B) case study. W14069 Khauli can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– W14069 Khauli 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, W14069 Khauli can use these opportunities to build new business models that can help the communities that W14069 Khauli operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Using analytics as competitive advantage
– W14069 Khauli 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 (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help W14069 Khauli to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for W14069 Khauli 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 W14069 Khauli to hire the very best people irrespective of their geographical location.
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 W14069 Khauli 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.
Manufacturing automation
– W14069 Khauli 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for W14069 Khauli 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, W14069 Khauli 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.
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 W14069 Khauli in the consumer business. Now W14069 Khauli can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects W14069 Khauli can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Azza Fahmy Jewellery: Going Online Post Revolution (B) 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 (B) are -
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 (B), W14069 Khauli 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 .
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. W14069 Khauli 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.
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 W14069 Khauli.
Regulatory challenges
– W14069 Khauli 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.
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 W14069 Khauli business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– W14069 Khauli 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. W14069 Khauli can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Stagnating economy with rate increase
– W14069 Khauli 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for W14069 Khauli 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, W14069 Khauli 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 (B) .
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.
Shortening product life cycle
– it is one of the major threat that W14069 Khauli is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. W14069 Khauli can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Weighted SWOT Analysis of Azza Fahmy Jewellery: Going Online Post Revolution (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 Azza Fahmy Jewellery: Going Online Post Revolution (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 Azza Fahmy Jewellery: Going Online Post Revolution (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 Azza Fahmy Jewellery: Going Online Post Revolution (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 Azza Fahmy Jewellery: Going Online Post Revolution (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 W14069 Khauli needs to make to build a sustainable competitive advantage.