Case Study Description of Azza Fahmy Jewellery: Expand Locally or Internationally?
This is the second case in the Azza Fahmy series. This case and the three others in this series (9B13M097, 9B13M099 and 9B14M023) can be used together or on a standalone basis. This case series features a female Egyptian entrepreneur who faces the challenge of developing her self-titled jewellery brand. In this case, the entrepreneur realizes the importance of having a clear organizational structure with different departments and a clear chain of authority. As a result, she hires her daughter as the managing director to take on the responsibility of developing a mission, vision and explicit organizational structure. This restructuring allows the company to grow further, which leads the entrepreneur to consider her opportunities in the international market. Author Marina Apaydin is affiliated with American University of Beirut. Author Hend Mostafa is affiliated with American University of Cairo.
Swot Analysis of "Azza Fahmy Jewellery: Expand Locally or Internationally?" written by Marina Apaydin, Hend Mostafa, Mariam Mohamed Sherin, Mariam Ali Mobarak includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Azza Fahmy facing as an external strategic factors. Some of the topics covered in Azza Fahmy Jewellery: Expand Locally or Internationally? 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: Expand Locally or Internationally? casestudy better are - – there is increasing trade war between United States & China, technology disruption, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, geopolitical disruptions, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy,
increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Azza Fahmy Jewellery: Expand Locally or Internationally?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Azza Fahmy Jewellery: Expand Locally or Internationally? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Azza Fahmy, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Azza Fahmy 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: Expand Locally or Internationally? can be done for the following purposes –
1. Strategic planning using facts provided in Azza Fahmy Jewellery: Expand Locally or Internationally? case study
2. Improving business portfolio management of Azza Fahmy
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 Azza Fahmy
Strengths Azza Fahmy Jewellery: Expand Locally or Internationally? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Azza Fahmy in Azza Fahmy Jewellery: Expand Locally or Internationally? Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Azza Fahmy 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.
Successful track record of launching new products
– Azza Fahmy has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Azza Fahmy 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.
Ability to lead change in Strategy & Execution field
– Azza Fahmy 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 Azza Fahmy in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Azza Fahmy is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Azza Fahmy is one of the leading recruiters in the industry. Managers in the Azza Fahmy Jewellery: Expand Locally or Internationally? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Strategy & Execution industry
– Azza Fahmy Jewellery: Expand Locally or Internationally? firm has clearly differentiated products in the market place. This has enabled Azza Fahmy to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Azza Fahmy to invest into research and development (R&D) and innovation.
High brand equity
– Azza Fahmy has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Azza Fahmy to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the Azza Fahmy Jewellery: Expand Locally or Internationally? 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.
Highly skilled collaborators
– Azza Fahmy 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: Expand Locally or Internationally? HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Azza Fahmy in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Azza Fahmy 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, Mariam Mohamed Sherin, Mariam Ali Mobarak 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.
Diverse revenue streams
– Azza Fahmy is present in almost all the verticals within the industry. This has provided firm in Azza Fahmy Jewellery: Expand Locally or Internationally? 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.
Weaknesses Azza Fahmy Jewellery: Expand Locally or Internationally? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Azza Fahmy Jewellery: Expand Locally or Internationally? are -
High operating costs
– Compare to the competitors, firm in the HBR case study Azza Fahmy Jewellery: Expand Locally or Internationally? 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 Azza Fahmy 's lucrative customers.
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 Azza Fahmy supply chain. Even after few cautionary changes mentioned in the HBR case study - Azza Fahmy Jewellery: Expand Locally or Internationally?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Azza Fahmy vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As Azza Fahmy Jewellery: Expand Locally or Internationally? HBR case study mentions - Azza Fahmy 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.
Need for greater diversity
– Azza Fahmy 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.
Products dominated business model
– Even though Azza Fahmy 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: Expand Locally or Internationally? should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Azza Fahmy 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.
No frontier risks strategy
– After analyzing the HBR case study Azza Fahmy Jewellery: Expand Locally or Internationally?, 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.
Increasing silos among functional specialists
– The organizational structure of Azza Fahmy is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Azza Fahmy needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Azza Fahmy to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Azza Fahmy Jewellery: Expand Locally or Internationally? 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 Azza Fahmy has relatively successful track record of launching new products.
High bargaining power of channel partners
– Because of the regulatory requirements, Marina Apaydin, Hend Mostafa, Mariam Mohamed Sherin, Mariam Ali Mobarak suggests that, Azza Fahmy is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Azza Fahmy Jewellery: Expand Locally or Internationally?, in the dynamic environment Azza Fahmy has struggled to respond to the nimble upstart competition. Azza Fahmy has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Azza Fahmy Jewellery: Expand Locally or Internationally? | 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: Expand Locally or Internationally? are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Azza Fahmy is facing challenges because of the dominance of functional experts in the organization. Azza Fahmy Jewellery: Expand Locally or Internationally? 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.
Developing new processes and practices
– Azza Fahmy 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Azza Fahmy 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.
Manufacturing automation
– Azza Fahmy 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 Azza Fahmy 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Azza Fahmy 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 Azza Fahmy to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Azza Fahmy can use these opportunities to build new business models that can help the communities that Azza Fahmy operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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. Azza Fahmy can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of Azza Fahmy has opened avenues for new revenue streams for the organization in the industry. This can help Azza Fahmy to build a more holistic ecosystem as suggested in the Azza Fahmy Jewellery: Expand Locally or Internationally? case study. Azza Fahmy can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Azza Fahmy 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: Expand Locally or Internationally? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Azza Fahmy to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Azza Fahmy 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
– Azza Fahmy can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Azza Fahmy Jewellery: Expand Locally or Internationally? 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, Azza Fahmy 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: Expand Locally or Internationally?, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Azza Fahmy Jewellery: Expand Locally or Internationally? 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: Expand Locally or Internationally? are -
High dependence on third party suppliers
– Azza Fahmy 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.
Environmental challenges
– Azza Fahmy 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. Azza Fahmy can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Consumer confidence and its impact on Azza Fahmy 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.
Shortening product life cycle
– it is one of the major threat that Azza Fahmy is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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. Azza Fahmy can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Azza Fahmy business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Azza Fahmy 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Azza Fahmy with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Azza Fahmy 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 wage structure of Azza Fahmy
– 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 Azza Fahmy.
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. Azza Fahmy 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Azza Fahmy 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: Expand Locally or Internationally? .
Weighted SWOT Analysis of Azza Fahmy Jewellery: Expand Locally or Internationally? 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: Expand Locally or Internationally? 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: Expand Locally or Internationally? 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: Expand Locally or Internationally? 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: Expand Locally or Internationally? 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 Azza Fahmy needs to make to build a sustainable competitive advantage.