Mavesa (B): International Strategy and Valuation Concerns SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Mavesa (B): International Strategy and Valuation Concerns
Examines Mavesa's response to economic liberalization. Looks at Mavesa's efforts to expand into neighboring countries. Also looks at efforts to support the firm's stock price. A rewritten version of an earlier case.
Swot Analysis of "Mavesa (B): International Strategy and Valuation Concerns" written by Robert E. Kennedy includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mavesa's Mavesa facing as an external strategic factors. Some of the topics covered in Mavesa (B): International Strategy and Valuation Concerns case study are - Strategic Management Strategies, Emerging markets, Globalization, Policy and Global Business.
Some of the macro environment factors that can be used to understand the Mavesa (B): International Strategy and Valuation Concerns casestudy better are - – cloud computing is disrupting traditional business models, talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China,
geopolitical disruptions, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Mavesa (B): International Strategy and Valuation Concerns
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mavesa (B): International Strategy and Valuation Concerns case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mavesa's Mavesa, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mavesa's Mavesa 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 Mavesa (B): International Strategy and Valuation Concerns can be done for the following purposes –
1. Strategic planning using facts provided in Mavesa (B): International Strategy and Valuation Concerns case study
2. Improving business portfolio management of Mavesa's Mavesa
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 Mavesa's Mavesa
Strengths Mavesa (B): International Strategy and Valuation Concerns | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mavesa's Mavesa in Mavesa (B): International Strategy and Valuation Concerns Harvard Business Review case study are -
Ability to recruit top talent
– Mavesa's Mavesa is one of the leading recruiters in the industry. Managers in the Mavesa (B): International Strategy and Valuation Concerns are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Mavesa's Mavesa 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.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Mavesa's Mavesa digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mavesa's Mavesa 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.
Successful track record of launching new products
– Mavesa's Mavesa has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mavesa's Mavesa 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.
Diverse revenue streams
– Mavesa's Mavesa is present in almost all the verticals within the industry. This has provided firm in Mavesa (B): International Strategy and Valuation Concerns 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.
Low bargaining power of suppliers
– Suppliers of Mavesa's Mavesa in the sector have low bargaining power. Mavesa (B): International Strategy and Valuation Concerns has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mavesa's Mavesa to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Mavesa's Mavesa in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Mavesa's Mavesa has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Mavesa (B): International Strategy and Valuation Concerns 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.
Strong track record of project management
– Mavesa's Mavesa is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Mavesa's Mavesa 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 Robert E. Kennedy 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.
Cross disciplinary teams
– Horizontal connected teams at the Mavesa's Mavesa 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.
High brand equity
– Mavesa's Mavesa has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mavesa's Mavesa to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Mavesa (B): International Strategy and Valuation Concerns | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mavesa (B): International Strategy and Valuation Concerns are -
Workers concerns about automation
– As automation is fast increasing in the segment, Mavesa's Mavesa 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.
Aligning sales with marketing
– It come across in the case study Mavesa (B): International Strategy and Valuation Concerns 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 Mavesa (B): International Strategy and Valuation Concerns can leverage the sales team experience to cultivate customer relationships as Mavesa's Mavesa is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Mavesa (B): International Strategy and Valuation Concerns, is just above the industry average. Mavesa's Mavesa needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Slow to strategic competitive environment developments
– As Mavesa (B): International Strategy and Valuation Concerns HBR case study mentions - Mavesa's Mavesa 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mavesa's Mavesa is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Mavesa (B): International Strategy and Valuation Concerns can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Interest costs
– Compare to the competition, Mavesa's Mavesa 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.
Increasing silos among functional specialists
– The organizational structure of Mavesa's Mavesa is dominated by functional specialists. It is not different from other players in the Global Business segment. Mavesa's Mavesa needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mavesa's Mavesa to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Mavesa (B): International Strategy and Valuation Concerns, it seems that company is thinking about the frontier risks that can impact Global Business strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Mavesa (B): International Strategy and Valuation Concerns 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 Mavesa's Mavesa has relatively successful track record of launching new products.
Products dominated business model
– Even though Mavesa's Mavesa 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 - Mavesa (B): International Strategy and Valuation Concerns should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Mavesa's Mavesa, firm in the HBR case study Mavesa (B): International Strategy and Valuation Concerns needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Mavesa (B): International Strategy and Valuation Concerns | 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 Mavesa (B): International Strategy and Valuation Concerns are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Mavesa's Mavesa 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Mavesa's Mavesa 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. Mavesa's Mavesa 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.
Building a culture of innovation
– managers at Mavesa's Mavesa 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mavesa's Mavesa 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 Mavesa's Mavesa to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mavesa's Mavesa can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Mavesa's Mavesa 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.
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 Mavesa's Mavesa in the consumer business. Now Mavesa's Mavesa can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Mavesa's Mavesa 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.
Using analytics as competitive advantage
– Mavesa's Mavesa has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Mavesa (B): International Strategy and Valuation Concerns - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Mavesa's Mavesa to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Mavesa's Mavesa can use the latest technology developments to improve its manufacturing and designing process in Global Business 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.
Better consumer reach
– The expansion of the 5G network will help Mavesa's Mavesa to increase its market reach. Mavesa's Mavesa 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Mavesa's Mavesa can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of Mavesa's Mavesa has opened avenues for new revenue streams for the organization in the industry. This can help Mavesa's Mavesa to build a more holistic ecosystem as suggested in the Mavesa (B): International Strategy and Valuation Concerns case study. Mavesa's Mavesa can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Mavesa (B): International Strategy and Valuation Concerns External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Mavesa (B): International Strategy and Valuation Concerns are -
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. Mavesa's Mavesa needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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. Mavesa's Mavesa 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.
High dependence on third party suppliers
– Mavesa's Mavesa 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.
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.
Regulatory challenges
– Mavesa's Mavesa 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 Global Business industry regulations.
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 Mavesa's Mavesa business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mavesa's Mavesa 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 Mavesa's Mavesa.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Mavesa (B): International Strategy and Valuation Concerns, Mavesa's Mavesa 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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mavesa's Mavesa 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 Mavesa (B): International Strategy and Valuation Concerns .
Stagnating economy with rate increase
– Mavesa's Mavesa 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.
Shortening product life cycle
– it is one of the major threat that Mavesa's Mavesa is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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.
Weighted SWOT Analysis of Mavesa (B): International Strategy and Valuation Concerns 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 Mavesa (B): International Strategy and Valuation Concerns 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 Mavesa (B): International Strategy and Valuation Concerns 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 Mavesa (B): International Strategy and Valuation Concerns 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 Mavesa (B): International Strategy and Valuation Concerns 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 Mavesa's Mavesa needs to make to build a sustainable competitive advantage.