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 - – increasing commodity prices, increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy,
central banks are concerned over increasing inflation, there is backlash against globalization, 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 -
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For W14069 Khauli digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. W14069 Khauli has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Low bargaining power of suppliers
– Suppliers of 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.
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.
Learning organization
- W14069 Khauli 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 W14069 Khauli is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Azza Fahmy Jewellery: Going Online Post Revolution (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
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.
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.
High switching costs
– The high switching costs that W14069 Khauli 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
– 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.
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.
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.
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.
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 -
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.
Skills based hiring
– The stress on hiring functional specialists at W14069 Khauli 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.
Lack of clear differentiation of W14069 Khauli products
– To increase the profitability and margins on the products, W14069 Khauli needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, W14069 Khauli 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 (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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.
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.
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.
Aligning sales with marketing
– It come across in the case study Azza Fahmy Jewellery: Going Online Post Revolution (B) that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Azza Fahmy Jewellery: Going Online Post Revolution (B) can leverage the sales team experience to cultivate customer relationships as W14069 Khauli is planning to shift buying processes online.
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.
Low market penetration in new markets
– Outside its home market of W14069 Khauli, firm in the HBR case study Azza Fahmy Jewellery: Going Online Post Revolution (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 -
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.
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. W14069 Khauli can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– W14069 Khauli 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.
Learning at scale
– Online learning technologies has now opened space for W14069 Khauli 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.
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.
Building a culture of innovation
– managers at W14069 Khauli 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. W14069 Khauli can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. W14069 Khauli can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, W14069 Khauli 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 (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, W14069 Khauli is facing challenges because of the dominance of functional experts in the organization. Azza Fahmy Jewellery: Going Online Post Revolution (B) 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.
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.
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.
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 -
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. W14069 Khauli needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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.
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) .
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 .
Consumer confidence and its impact on W14069 Khauli 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents W14069 Khauli with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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.
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.
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 W14069 Khauli in the Strategy & Execution sector and impact the bottomline of the organization.
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.
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.
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.
