Blue Ocean or Stormy Waters? Buying Nix Check Cashing SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Blue Ocean or Stormy Waters? Buying Nix Check Cashing
Kinecta Federal Credit Union has the opportunity to purchase Nix Check Cashing as part of their "blue ocean" strategy to reach the financially underserved and increase credit union membership and deposits. But they face financial as well as reputational risk. Check cashing, payday lending and other alternative financial services are maligned in mainstream financial circles. This case asks students to evaluate both organizations, their respective industries, and the proposed $45 million deal and determine whether or not it makes sense for Kinecta to purchase Nix.
Swot Analysis of "Blue Ocean or Stormy Waters? Buying Nix Check Cashing" written by Peter Tufano, Andrea Ryan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cashing Nix facing as an external strategic factors. Some of the topics covered in Blue Ocean or Stormy Waters? Buying Nix Check Cashing case study are - Strategic Management Strategies, Financial management, Strategic planning and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Blue Ocean or Stormy Waters? Buying Nix Check Cashing casestudy better are - – increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs,
increasing household debt because of falling income levels, there is backlash against globalization, etc
Introduction to SWOT Analysis of Blue Ocean or Stormy Waters? Buying Nix Check Cashing
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Blue Ocean or Stormy Waters? Buying Nix Check Cashing case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cashing Nix, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cashing Nix 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 Blue Ocean or Stormy Waters? Buying Nix Check Cashing can be done for the following purposes –
1. Strategic planning using facts provided in Blue Ocean or Stormy Waters? Buying Nix Check Cashing case study
2. Improving business portfolio management of Cashing Nix
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 Cashing Nix
Strengths Blue Ocean or Stormy Waters? Buying Nix Check Cashing | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Cashing Nix in Blue Ocean or Stormy Waters? Buying Nix Check Cashing Harvard Business Review case study are -
Organizational Resilience of Cashing Nix
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Cashing Nix does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Cashing Nix 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 Peter Tufano, Andrea Ryan 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.
Learning organization
- Cashing Nix 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 Cashing Nix is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Blue Ocean or Stormy Waters? Buying Nix Check Cashing Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Cashing Nix 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 Blue Ocean or Stormy Waters? Buying Nix Check Cashing HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Cashing Nix is present in almost all the verticals within the industry. This has provided firm in Blue Ocean or Stormy Waters? Buying Nix Check Cashing 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.
Successful track record of launching new products
– Cashing Nix has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cashing Nix 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 Finance & Accounting field
– Cashing Nix 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 Cashing Nix in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Cashing Nix 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 Blue Ocean or Stormy Waters? Buying Nix Check Cashing - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Cashing Nix has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cashing Nix to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Cashing Nix digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cashing Nix 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.
Training and development
– Cashing Nix has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Blue Ocean or Stormy Waters? Buying Nix Check Cashing 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 Finance & Accounting industry
– Blue Ocean or Stormy Waters? Buying Nix Check Cashing firm has clearly differentiated products in the market place. This has enabled Cashing Nix to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Cashing Nix to invest into research and development (R&D) and innovation.
Weaknesses Blue Ocean or Stormy Waters? Buying Nix Check Cashing | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Blue Ocean or Stormy Waters? Buying Nix Check Cashing are -
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 Cashing Nix supply chain. Even after few cautionary changes mentioned in the HBR case study - Blue Ocean or Stormy Waters? Buying Nix Check Cashing, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Cashing Nix vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Cashing Nix 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.
Slow decision making process
– As mentioned earlier in the report, Cashing Nix has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Cashing Nix even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Increasing silos among functional specialists
– The organizational structure of Cashing Nix is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Cashing Nix needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cashing Nix to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Blue Ocean or Stormy Waters? Buying Nix Check Cashing, in the dynamic environment Cashing Nix has struggled to respond to the nimble upstart competition. Cashing Nix has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Cashing Nix is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Blue Ocean or Stormy Waters? Buying Nix Check Cashing 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Blue Ocean or Stormy Waters? Buying Nix Check Cashing 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 Cashing Nix has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Cashing Nix 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Blue Ocean or Stormy Waters? Buying Nix Check Cashing 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 Cashing Nix 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Cashing Nix 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.
Products dominated business model
– Even though Cashing Nix 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 - Blue Ocean or Stormy Waters? Buying Nix Check Cashing should strive to include more intangible value offerings along with its core products and services.
Opportunities Blue Ocean or Stormy Waters? Buying Nix Check Cashing | 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 Blue Ocean or Stormy Waters? Buying Nix Check Cashing are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Cashing Nix in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Cashing Nix is facing challenges because of the dominance of functional experts in the organization. Blue Ocean or Stormy Waters? Buying Nix Check Cashing 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.
Creating value in data economy
– The success of analytics program of Cashing Nix has opened avenues for new revenue streams for the organization in the industry. This can help Cashing Nix to build a more holistic ecosystem as suggested in the Blue Ocean or Stormy Waters? Buying Nix Check Cashing case study. Cashing Nix can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Cashing Nix can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Blue Ocean or Stormy Waters? Buying Nix Check Cashing 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.
Learning at scale
– Online learning technologies has now opened space for Cashing Nix 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Cashing Nix can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Cashing Nix can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Cashing Nix 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 Cashing Nix to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Cashing Nix has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Cashing Nix can use these opportunities to build new business models that can help the communities that Cashing Nix operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
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 Cashing Nix 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.
Better consumer reach
– The expansion of the 5G network will help Cashing Nix to increase its market reach. Cashing Nix will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Building a culture of innovation
– managers at Cashing Nix 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.
Threats Blue Ocean or Stormy Waters? Buying Nix Check Cashing External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Blue Ocean or Stormy Waters? Buying Nix Check Cashing 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.
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. Cashing Nix needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
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 Cashing Nix in the Finance & Accounting sector and impact the bottomline of the organization.
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. Cashing Nix 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.
Regulatory challenges
– Cashing Nix needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Finance & Accounting industry regulations.
High dependence on third party suppliers
– Cashing Nix 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
– Cashing Nix 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. Cashing Nix can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Cashing Nix 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 Cashing Nix.
Technology acceleration in Forth Industrial Revolution
– Cashing Nix has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Cashing Nix 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.
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 Cashing Nix business can come under increasing regulations regarding data privacy, data security, 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.
Shortening product life cycle
– it is one of the major threat that Cashing Nix is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Blue Ocean or Stormy Waters? Buying Nix Check Cashing 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 Blue Ocean or Stormy Waters? Buying Nix Check Cashing 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 Blue Ocean or Stormy Waters? Buying Nix Check Cashing 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 Blue Ocean or Stormy Waters? Buying Nix Check Cashing 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 Blue Ocean or Stormy Waters? Buying Nix Check Cashing 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 Cashing Nix needs to make to build a sustainable competitive advantage.
