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 - – supply chains are disrupted by pandemic , technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google,
increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, 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 -
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.
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.
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.
Operational resilience
– The operational resilience strategy in the Blue Ocean or Stormy Waters? Buying Nix Check Cashing Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Highly skilled collaborators
– 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.
Innovation driven organization
– Cashing Nix is one of the most innovative firm in sector. Manager in Blue Ocean or Stormy Waters? Buying Nix Check Cashing Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Cashing Nix is one of the leading recruiters in the industry. Managers in the Blue Ocean or Stormy Waters? Buying Nix Check Cashing are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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.
Cross disciplinary teams
– Horizontal connected teams at the Cashing Nix 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.
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.
Low bargaining power of suppliers
– Suppliers of Cashing Nix in the sector have low bargaining power. Blue Ocean or Stormy Waters? Buying Nix Check Cashing has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Cashing Nix to manage not only supply disruptions but also source products at highly competitive prices.
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 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.
High cash cycle compare to competitors
Cashing Nix 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.
Slow to strategic competitive environment developments
– As Blue Ocean or Stormy Waters? Buying Nix Check Cashing HBR case study mentions - Cashing Nix 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.
Aligning sales with marketing
– It come across in the case study Blue Ocean or Stormy Waters? Buying Nix Check Cashing 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 Blue Ocean or Stormy Waters? Buying Nix Check Cashing can leverage the sales team experience to cultivate customer relationships as Cashing Nix is planning to shift buying processes online.
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Blue Ocean or Stormy Waters? Buying Nix Check Cashing, is just above the industry average. Cashing Nix 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.
Capital Spending Reduction
– Even during the low interest decade, Cashing Nix 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.
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.
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.
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.
Low market penetration in new markets
– Outside its home market of Cashing Nix, firm in the HBR case study Blue Ocean or Stormy Waters? Buying Nix Check Cashing needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Cashing Nix can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Blue Ocean or Stormy Waters? Buying Nix Check Cashing, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Cashing Nix 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.
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.
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.
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.
Leveraging digital technologies
– Cashing Nix 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.
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.
Developing new processes and practices
– Cashing Nix can develop new processes and procedures in Finance & Accounting 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.
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.
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. Cashing Nix 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. Cashing Nix 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 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 -
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.
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.
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.
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.
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.
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.
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.
Stagnating economy with rate increase
– Cashing Nix 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.
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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Cashing Nix in the Finance & Accounting industry. The Finance & Accounting 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.
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.
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.
