Case Study Description of The e-Choupal Initiative
An international corporation's agricultural business division reviews its seven-year-old IT initiative among rural Indian farmers. Suitable for learners at all levels, the case is ideal for modules on strategic change, transformational change in a value chain, and development at the bottom of the pyramid. It also provides excellent insight into how corporations can improve both profits and lifestyles in developing nations while bolstering their worldwide competitiveness. The e-Choupal initiative provides Internet access to connect and unite farmers by teaching them more efficient farming methods and wholesaler accountability strategies. Should the company expand the initiative throughout the country? Given India's size and the various challenges involved, expansion would not be an easy task.
Authors :: S. Venkataraman, Anne-Laure Thiemele, Jenny Mead, Alexander Horniman
Swot Analysis of "The e-Choupal Initiative" written by S. Venkataraman, Anne-Laure Thiemele, Jenny Mead, Alexander Horniman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Choupal Initiative facing as an external strategic factors. Some of the topics covered in The e-Choupal Initiative case study are - Strategic Management Strategies, Ethics, Leadership, Strategy, Supply chain, Technology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the The e-Choupal Initiative casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, etc
Introduction to SWOT Analysis of The e-Choupal Initiative
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The e-Choupal Initiative case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Choupal Initiative, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Choupal Initiative 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 The e-Choupal Initiative can be done for the following purposes –
1. Strategic planning using facts provided in The e-Choupal Initiative case study
2. Improving business portfolio management of Choupal Initiative
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 Choupal Initiative
Strengths The e-Choupal Initiative | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Choupal Initiative in The e-Choupal Initiative Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Choupal Initiative in the sector have low bargaining power. The e-Choupal Initiative has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Choupal Initiative to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Choupal Initiative has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The e-Choupal Initiative 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.
Sustainable margins compare to other players in Strategy & Execution industry
– The e-Choupal Initiative firm has clearly differentiated products in the market place. This has enabled Choupal Initiative to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Choupal Initiative to invest into research and development (R&D) and innovation.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Choupal Initiative digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Choupal Initiative 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.
Superior customer experience
– The customer experience strategy of Choupal Initiative in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Choupal Initiative is one of the most innovative firm in sector. Manager in The e-Choupal Initiative Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Choupal Initiative has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Choupal Initiative to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Choupal Initiative 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 Choupal Initiative is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The e-Choupal Initiative Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Choupal Initiative is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Choupal Initiative 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.
Ability to recruit top talent
– Choupal Initiative is one of the leading recruiters in the industry. Managers in the The e-Choupal Initiative are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Choupal Initiative 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 S. Venkataraman, Anne-Laure Thiemele, Jenny Mead, Alexander Horniman 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.
Weaknesses The e-Choupal Initiative | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The e-Choupal Initiative are -
Workers concerns about automation
– As automation is fast increasing in the segment, Choupal Initiative 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 operating costs
– Compare to the competitors, firm in the HBR case study The e-Choupal Initiative 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 Choupal Initiative 's lucrative customers.
Low market penetration in new markets
– Outside its home market of Choupal Initiative, firm in the HBR case study The e-Choupal Initiative needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study The e-Choupal Initiative, is just above the industry average. Choupal Initiative 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.
Slow to strategic competitive environment developments
– As The e-Choupal Initiative HBR case study mentions - Choupal Initiative 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.
Skills based hiring
– The stress on hiring functional specialists at Choupal Initiative 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.
High cash cycle compare to competitors
Choupal Initiative 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.
Aligning sales with marketing
– It come across in the case study The e-Choupal Initiative 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 The e-Choupal Initiative can leverage the sales team experience to cultivate customer relationships as Choupal Initiative is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, S. Venkataraman, Anne-Laure Thiemele, Jenny Mead, Alexander Horniman suggests that, Choupal Initiative 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.
Increasing silos among functional specialists
– The organizational structure of Choupal Initiative is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Choupal Initiative needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Choupal Initiative to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Choupal Initiative is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The e-Choupal Initiative can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities The e-Choupal Initiative | 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 The e-Choupal Initiative are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Choupal Initiative 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.
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 Choupal Initiative 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.
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. Choupal Initiative can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Choupal Initiative 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.
Buying journey improvements
– Choupal Initiative can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The e-Choupal Initiative 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 Choupal Initiative has opened avenues for new revenue streams for the organization in the industry. This can help Choupal Initiative to build a more holistic ecosystem as suggested in the The e-Choupal Initiative case study. Choupal Initiative can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Choupal Initiative 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.
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. Choupal Initiative 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. Choupal Initiative 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.
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 Choupal Initiative in the consumer business. Now Choupal Initiative can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Choupal Initiative 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 The e-Choupal Initiative - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Choupal Initiative to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Choupal Initiative 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Choupal Initiative can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Choupal Initiative 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.
Threats The e-Choupal Initiative External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The e-Choupal Initiative are -
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Choupal Initiative 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 The e-Choupal Initiative .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Choupal Initiative with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Choupal Initiative 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. Choupal Initiative 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 Choupal Initiative 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 Choupal Initiative business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Choupal Initiative is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Choupal Initiative 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.
Stagnating economy with rate increase
– Choupal Initiative 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.
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.
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. Choupal Initiative needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 Choupal Initiative.
High dependence on third party suppliers
– Choupal Initiative 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.
Weighted SWOT Analysis of The e-Choupal Initiative 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 The e-Choupal Initiative 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 The e-Choupal Initiative 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 The e-Choupal Initiative 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 The e-Choupal Initiative 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 Choupal Initiative needs to make to build a sustainable competitive advantage.
