Competing for Development (B3): Aprovecho SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Competing for Development (B3): Aprovecho
This a role play supplement to Competing for Development (A): Fuel Efficient Stoves for Darfur, product # 908M61. The role plays feature additional background, motivations and decision priorities from the key local and international players in Darfur's fuel efficient stove interventions, including the Intermediate Technology Group , renamed to Practical Action in 2005 (ITDG/PA), the Lawrence Berkeley National Lab, Aprovecho, the International Lifeline Fund, the United States Agency for International Development (USAID), and organizations representing local, female, internally displaced persons (IDPs).
Swot Analysis of "Competing for Development (B3): Aprovecho" written by Oana Branzei, Samer Abdelnour includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Aprovecho Fuel facing as an external strategic factors. Some of the topics covered in Competing for Development (B3): Aprovecho case study are - Strategic Management Strategies, Economic development, Emerging markets, Social enterprise, Sustainability and Global Business.
Some of the macro environment factors that can be used to understand the Competing for Development (B3): Aprovecho casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, geopolitical disruptions, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs,
there is increasing trade war between United States & China, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Competing for Development (B3): Aprovecho
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Competing for Development (B3): Aprovecho case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Aprovecho Fuel, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Aprovecho Fuel 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 Competing for Development (B3): Aprovecho can be done for the following purposes –
1. Strategic planning using facts provided in Competing for Development (B3): Aprovecho case study
2. Improving business portfolio management of Aprovecho Fuel
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Aprovecho Fuel
Strengths Competing for Development (B3): Aprovecho | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Aprovecho Fuel in Competing for Development (B3): Aprovecho Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Aprovecho Fuel 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.
Innovation driven organization
– Aprovecho Fuel is one of the most innovative firm in sector. Manager in Competing for Development (B3): Aprovecho Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Aprovecho Fuel has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Aprovecho Fuel 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 Global Business field
– Aprovecho Fuel 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 Aprovecho Fuel in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Competing for Development (B3): Aprovecho 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.
Low bargaining power of suppliers
– Suppliers of Aprovecho Fuel in the sector have low bargaining power. Competing for Development (B3): Aprovecho has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Aprovecho Fuel to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Aprovecho Fuel 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 Aprovecho Fuel is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Competing for Development (B3): Aprovecho Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Aprovecho Fuel has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Competing for Development (B3): Aprovecho 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.
Highly skilled collaborators
– Aprovecho Fuel 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 Competing for Development (B3): Aprovecho HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Aprovecho Fuel is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Aprovecho Fuel is present in almost all the verticals within the industry. This has provided firm in Competing for Development (B3): Aprovecho 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.
Effective Research and Development (R&D)
– Aprovecho Fuel 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 Competing for Development (B3): Aprovecho - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Competing for Development (B3): Aprovecho | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Competing for Development (B3): Aprovecho are -
Low market penetration in new markets
– Outside its home market of Aprovecho Fuel, firm in the HBR case study Competing for Development (B3): Aprovecho needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Aprovecho Fuel 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 - Competing for Development (B3): Aprovecho should strive to include more intangible value offerings along with its core products and services.
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 Aprovecho Fuel supply chain. Even after few cautionary changes mentioned in the HBR case study - Competing for Development (B3): Aprovecho, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Aprovecho Fuel vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Oana Branzei, Samer Abdelnour suggests that, Aprovecho Fuel is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Skills based hiring
– The stress on hiring functional specialists at Aprovecho Fuel 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.
Aligning sales with marketing
– It come across in the case study Competing for Development (B3): Aprovecho 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 Competing for Development (B3): Aprovecho can leverage the sales team experience to cultivate customer relationships as Aprovecho Fuel is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study Competing for Development (B3): Aprovecho 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 Aprovecho Fuel 's lucrative customers.
Need for greater diversity
– Aprovecho Fuel 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Aprovecho Fuel is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Competing for Development (B3): Aprovecho can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Aprovecho Fuel products
– To increase the profitability and margins on the products, Aprovecho Fuel needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Competing for Development (B3): Aprovecho 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 Aprovecho Fuel has relatively successful track record of launching new products.
Opportunities Competing for Development (B3): Aprovecho | 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 Competing for Development (B3): Aprovecho are -
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 Aprovecho Fuel in the consumer business. Now Aprovecho Fuel can target international markets with far fewer capital restrictions requirements than the existing system.
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. Aprovecho Fuel can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Aprovecho Fuel to increase its market reach. Aprovecho Fuel 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Aprovecho Fuel 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.
Learning at scale
– Online learning technologies has now opened space for Aprovecho Fuel 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Aprovecho Fuel is facing challenges because of the dominance of functional experts in the organization. Competing for Development (B3): Aprovecho 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Aprovecho Fuel in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Aprovecho Fuel can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Aprovecho Fuel has opened avenues for new revenue streams for the organization in the industry. This can help Aprovecho Fuel to build a more holistic ecosystem as suggested in the Competing for Development (B3): Aprovecho case study. Aprovecho Fuel can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Aprovecho Fuel can develop new processes and procedures in Global Business 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.
Building a culture of innovation
– managers at Aprovecho Fuel 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 Global Business segment.
Loyalty marketing
– Aprovecho Fuel 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.
Leveraging digital technologies
– Aprovecho Fuel 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.
Threats Competing for Development (B3): Aprovecho External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Competing for Development (B3): Aprovecho are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Aprovecho Fuel in the Global Business industry. The Global Business 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.
Technology acceleration in Forth Industrial Revolution
– Aprovecho Fuel has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Aprovecho Fuel needs to keep up with the evolution of technology in the Global Business 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.
Increasing wage structure of Aprovecho Fuel
– 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 Aprovecho Fuel.
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 Aprovecho Fuel.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Competing for Development (B3): Aprovecho, Aprovecho Fuel may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
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.
Stagnating economy with rate increase
– Aprovecho Fuel 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.
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. Aprovecho Fuel needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Environmental challenges
– Aprovecho Fuel 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. Aprovecho Fuel can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Aprovecho Fuel 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 Competing for Development (B3): Aprovecho .
Shortening product life cycle
– it is one of the major threat that Aprovecho Fuel is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Aprovecho Fuel 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.
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.
Weighted SWOT Analysis of Competing for Development (B3): Aprovecho 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 Competing for Development (B3): Aprovecho 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 Competing for Development (B3): Aprovecho 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 Competing for Development (B3): Aprovecho 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 Competing for Development (B3): Aprovecho 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 Aprovecho Fuel needs to make to build a sustainable competitive advantage.