Mobitell (A): Mobile Communications in Russia SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Mobitell (A): Mobile Communications in Russia
Examines the choice and implementation of a currency strategy for a telecommunications company operating in Russia with substantial exposure to the euro and U.S. dollar through various debt instruments. Asks students to assess the financial strategy and the appropriate financial reporting under the International Accounting Standards.
Authors :: Murray J. Bryant, Craig Dunbar, Konstantin Markov
Swot Analysis of "Mobitell (A): Mobile Communications in Russia" written by Murray J. Bryant, Craig Dunbar, Konstantin Markov includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Russia Mobitell facing as an external strategic factors. Some of the topics covered in Mobitell (A): Mobile Communications in Russia case study are - Strategic Management Strategies, Currency, Financial management, International business, Risk management and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Mobitell (A): Mobile Communications in Russia casestudy better are - – increasing commodity prices, challanges to central banks by blockchain based private currencies, increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, geopolitical disruptions, central banks are concerned over increasing inflation,
wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Mobitell (A): Mobile Communications in Russia
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mobitell (A): Mobile Communications in Russia case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Russia Mobitell, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Russia Mobitell 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 Mobitell (A): Mobile Communications in Russia can be done for the following purposes –
1. Strategic planning using facts provided in Mobitell (A): Mobile Communications in Russia case study
2. Improving business portfolio management of Russia Mobitell
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Russia Mobitell
Strengths Mobitell (A): Mobile Communications in Russia | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Russia Mobitell in Mobitell (A): Mobile Communications in Russia Harvard Business Review case study are -
Training and development
– Russia Mobitell has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Mobitell (A): Mobile Communications in Russia 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.
Operational resilience
– The operational resilience strategy in the Mobitell (A): Mobile Communications in Russia 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 Russia Mobitell
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Russia Mobitell does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Russia Mobitell is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Russia Mobitell 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 Mobitell (A): Mobile Communications in Russia - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Russia Mobitell in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Finance & Accounting industry
– Mobitell (A): Mobile Communications in Russia firm has clearly differentiated products in the market place. This has enabled Russia Mobitell to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Russia Mobitell to invest into research and development (R&D) and innovation.
Ability to lead change in Finance & Accounting field
– Russia Mobitell 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 Russia Mobitell in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Russia Mobitell has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Russia Mobitell 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.
Learning organization
- Russia Mobitell 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 Russia Mobitell is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Mobitell (A): Mobile Communications in Russia Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Russia Mobitell has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Russia Mobitell to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Russia Mobitell in the sector have low bargaining power. Mobitell (A): Mobile Communications in Russia has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Russia Mobitell to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Mobitell (A): Mobile Communications in Russia | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mobitell (A): Mobile Communications in Russia are -
Products dominated business model
– Even though Russia Mobitell 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 - Mobitell (A): Mobile Communications in Russia should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Russia Mobitell 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.
Increasing silos among functional specialists
– The organizational structure of Russia Mobitell is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Russia Mobitell needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Russia Mobitell to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Mobitell (A): Mobile Communications in Russia, it seems that the employees of Russia Mobitell don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Mobitell (A): Mobile Communications in Russia, in the dynamic environment Russia Mobitell has struggled to respond to the nimble upstart competition. Russia Mobitell has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study Mobitell (A): Mobile Communications in Russia 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 Russia Mobitell 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Mobitell (A): Mobile Communications in Russia, is just above the industry average. Russia Mobitell 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 Mobitell (A): Mobile Communications in Russia HBR case study mentions - Russia Mobitell 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Russia Mobitell 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 star products
– The top 2 products and services of the firm as mentioned in the Mobitell (A): Mobile Communications in Russia 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 Russia Mobitell has relatively successful track record of launching new products.
Lack of clear differentiation of Russia Mobitell products
– To increase the profitability and margins on the products, Russia Mobitell needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Mobitell (A): Mobile Communications in Russia | 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 Mobitell (A): Mobile Communications in Russia are -
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 Russia Mobitell 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Russia Mobitell 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 Russia Mobitell to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Russia Mobitell 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.
Creating value in data economy
– The success of analytics program of Russia Mobitell has opened avenues for new revenue streams for the organization in the industry. This can help Russia Mobitell to build a more holistic ecosystem as suggested in the Mobitell (A): Mobile Communications in Russia case study. Russia Mobitell can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Russia Mobitell 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.
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 Russia Mobitell in the consumer business. Now Russia Mobitell can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Russia Mobitell 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 Finance & Accounting segment.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Russia Mobitell can use these opportunities to build new business models that can help the communities that Russia Mobitell operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Leveraging digital technologies
– Russia Mobitell 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 Russia Mobitell 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.
Buying journey improvements
– Russia Mobitell can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Mobitell (A): Mobile Communications in Russia 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.
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. Russia Mobitell can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Russia Mobitell 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. Russia Mobitell 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.
Threats Mobitell (A): Mobile Communications in Russia External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Mobitell (A): Mobile Communications in Russia are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Russia Mobitell 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 Mobitell (A): Mobile Communications in Russia .
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 Russia Mobitell.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Russia Mobitell with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Russia Mobitell business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Russia Mobitell 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.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Russia Mobitell can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Russia Mobitell has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Russia Mobitell needs to keep up with the evolution of technology in the Finance & Accounting sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
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. Russia Mobitell needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Russia Mobitell 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.
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 Russia Mobitell in the Finance & Accounting sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Russia Mobitell 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.
Increasing wage structure of Russia Mobitell
– 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 Russia Mobitell.
Weighted SWOT Analysis of Mobitell (A): Mobile Communications in Russia 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 Mobitell (A): Mobile Communications in Russia 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 Mobitell (A): Mobile Communications in Russia 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 Mobitell (A): Mobile Communications in Russia 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 Mobitell (A): Mobile Communications in Russia 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 Russia Mobitell needs to make to build a sustainable competitive advantage.