Humanitarian Agility in Action (A): The 2015 Yemen Crisis SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Humanitarian Agility in Action (A): The 2015 Yemen Crisis
Agility is often mentioned but seldom defined or clearly illustrated. This case discusses UNICEF's response to the sudden disruption of its aid supply chain to Yemen after the bombing started in 2015. It illustrates how a forwarding hub was quickly established in Djibouti and dhow vessels were used to reach small Yemeni ports from there. The case analyzes the supply chain, the organizational and strategic aspects of agility and discusses how UNICEF can further develop its strategic agility as an organizational capability. It can be used in supply chain and strategy classes, as well as classes on change management and fast decision making processes in organizations. If you buy the case you will get access to all three parts, A, B, and C. Part A outlines the events leading up to the Yemen Crisis and presents the challenges faced by UNICEF. Part B then describes UNICEF's response to the crisis, and part C gives an analysis of this response. Parts B and C are restricted to instructors and only available on the dedicated case website https://cases.insead.edu/humanitarian-agility, but can be distributed to students as well.
Authors :: Luk N. Van Wassenhove, Charles Delagarde, Joachim Mikalsen
Swot Analysis of "Humanitarian Agility in Action (A): The 2015 Yemen Crisis" written by Luk N. Van Wassenhove, Charles Delagarde, Joachim Mikalsen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Agility Yemen facing as an external strategic factors. Some of the topics covered in Humanitarian Agility in Action (A): The 2015 Yemen Crisis case study are - Strategic Management Strategies, Supply chain and Technology & Operations.
Some of the macro environment factors that can be used to understand the Humanitarian Agility in Action (A): The 2015 Yemen Crisis casestudy better are - – increasing commodity prices, increasing energy prices, technology disruption, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies,
challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Humanitarian Agility in Action (A): The 2015 Yemen Crisis
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Humanitarian Agility in Action (A): The 2015 Yemen Crisis case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Agility Yemen, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Agility Yemen 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 Humanitarian Agility in Action (A): The 2015 Yemen Crisis can be done for the following purposes –
1. Strategic planning using facts provided in Humanitarian Agility in Action (A): The 2015 Yemen Crisis case study
2. Improving business portfolio management of Agility Yemen
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Agility Yemen
Strengths Humanitarian Agility in Action (A): The 2015 Yemen Crisis | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Agility Yemen in Humanitarian Agility in Action (A): The 2015 Yemen Crisis Harvard Business Review case study are -
Organizational Resilience of Agility Yemen
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Agility Yemen does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Agility Yemen 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.
Highly skilled collaborators
– Agility Yemen 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 Humanitarian Agility in Action (A): The 2015 Yemen Crisis HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the Agility Yemen 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Agility Yemen digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Agility Yemen has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Low bargaining power of suppliers
– Suppliers of Agility Yemen in the sector have low bargaining power. Humanitarian Agility in Action (A): The 2015 Yemen Crisis has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Agility Yemen to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Agility Yemen has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Agility Yemen 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.
High brand equity
– Agility Yemen has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Agility Yemen to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Agility Yemen in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the Humanitarian Agility in Action (A): The 2015 Yemen Crisis 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.
Ability to recruit top talent
– Agility Yemen is one of the leading recruiters in the industry. Managers in the Humanitarian Agility in Action (A): The 2015 Yemen Crisis are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Technology & Operations field
– Agility Yemen 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 Agility Yemen in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Humanitarian Agility in Action (A): The 2015 Yemen Crisis | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Humanitarian Agility in Action (A): The 2015 Yemen Crisis are -
Aligning sales with marketing
– It come across in the case study Humanitarian Agility in Action (A): The 2015 Yemen Crisis 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 Humanitarian Agility in Action (A): The 2015 Yemen Crisis can leverage the sales team experience to cultivate customer relationships as Agility Yemen is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Humanitarian Agility in Action (A): The 2015 Yemen Crisis 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 Agility Yemen '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 Agility Yemen supply chain. Even after few cautionary changes mentioned in the HBR case study - Humanitarian Agility in Action (A): The 2015 Yemen Crisis, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Agility Yemen vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Agility Yemen, firm in the HBR case study Humanitarian Agility in Action (A): The 2015 Yemen Crisis needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Agility Yemen products
– To increase the profitability and margins on the products, Agility Yemen needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Agility Yemen 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.
Need for greater diversity
– Agility Yemen 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Agility Yemen 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 Humanitarian Agility in Action (A): The 2015 Yemen Crisis 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 Agility Yemen has relatively successful track record of launching new products.
Products dominated business model
– Even though Agility Yemen 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 - Humanitarian Agility in Action (A): The 2015 Yemen Crisis should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Agility Yemen 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.
Opportunities Humanitarian Agility in Action (A): The 2015 Yemen Crisis | 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 Humanitarian Agility in Action (A): The 2015 Yemen Crisis are -
Better consumer reach
– The expansion of the 5G network will help Agility Yemen to increase its market reach. Agility Yemen 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 Agility Yemen 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 Technology & Operations segment.
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 Agility Yemen 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Agility Yemen can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Agility Yemen can develop new processes and procedures in Technology & Operations 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.
Buying journey improvements
– Agility Yemen can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Humanitarian Agility in Action (A): The 2015 Yemen Crisis 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. Agility Yemen can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Agility Yemen is facing challenges because of the dominance of functional experts in the organization. Humanitarian Agility in Action (A): The 2015 Yemen Crisis 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Agility Yemen can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Agility Yemen in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Low interest rates
– Even though inflation is raising its head in most developed economies, Agility Yemen 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
– Agility Yemen can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Agility Yemen can use these opportunities to build new business models that can help the communities that Agility Yemen operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Threats Humanitarian Agility in Action (A): The 2015 Yemen Crisis External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Humanitarian Agility in Action (A): The 2015 Yemen Crisis are -
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 Agility Yemen.
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.
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. Agility Yemen 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, Agility Yemen 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 Humanitarian Agility in Action (A): The 2015 Yemen Crisis .
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.
Technology acceleration in Forth Industrial Revolution
– Agility Yemen has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Agility Yemen needs to keep up with the evolution of technology in the Technology & Operations 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.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Agility Yemen can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Agility Yemen with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Agility Yemen needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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 Agility Yemen business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Agility Yemen 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.
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 Agility Yemen in the Technology & Operations sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Agility Yemen in the Technology & Operations industry. The Technology & Operations 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.
Weighted SWOT Analysis of Humanitarian Agility in Action (A): The 2015 Yemen Crisis 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 Humanitarian Agility in Action (A): The 2015 Yemen Crisis 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 Humanitarian Agility in Action (A): The 2015 Yemen Crisis 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 Humanitarian Agility in Action (A): The 2015 Yemen Crisis 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 Humanitarian Agility in Action (A): The 2015 Yemen Crisis 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 Agility Yemen needs to make to build a sustainable competitive advantage.
