Orange Cameroon, A Global Telecommunications Company in Africa SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Orange Cameroon, A Global Telecommunications Company in Africa

This case series is designed to illustrate the specificities of competition in poor and developing economies and, more specifically, competition at the Base of the Pyramid. It is composed of four documents: two company cases, a country note, and an industry note. The company cases describe the competitive dynamics between two international telecom companies, Orange and MTN, in the Cameroonian telecom market. Each company case begins with a brief history of the company, followed by a description of the company's global strategy and of its entry into Cameroon. It goes on to describe the competitive dynamics in Cameroon from the company's perspective, and, particularly, the moves and counter-moves undertaken by each competitor to gain market share. Finally, the case describes the company's Corporate Social Responsibility initiatives, globally and in Cameroon. The case series also includes two background notes. The first note describes the evolution and the basic technical characteristics of the cell phone industry. The second note provides an introduction to the geography, history, and economy of Cameroon, with a particular focus on the socio-economic conditions of the country's population. Taken together, this case series allows a discussion of competition at the Base of the Pyramid, including both business and ethical aspects.

Authors :: Miguel Rivera-Santos, Carlos Rufin

Topics :: Global Business

Tags :: Ethics, International business, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Orange Cameroon, A Global Telecommunications Company in Africa" written by Miguel Rivera-Santos, Carlos Rufin includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Cameroon Orange facing as an external strategic factors. Some of the topics covered in Orange Cameroon, A Global Telecommunications Company in Africa case study are - Strategic Management Strategies, Ethics, International business, Social responsibility and Global Business.

Some of the macro environment factors that can be used to understand the Orange Cameroon, A Global Telecommunications Company in Africa casestudy better are - – central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels, supply chains are disrupted by pandemic , etc

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Introduction to SWOT Analysis of Orange Cameroon, A Global Telecommunications Company in Africa

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Orange Cameroon, A Global Telecommunications Company in Africa case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Cameroon Orange, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Cameroon Orange 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Orange Cameroon, A Global Telecommunications Company in Africa can be done for the following purposes –
1. Strategic planning using facts provided in Orange Cameroon, A Global Telecommunications Company in Africa case study
2. Improving business portfolio management of Cameroon Orange
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 Cameroon Orange

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Strengths Orange Cameroon, A Global Telecommunications Company in Africa | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Cameroon Orange in Orange Cameroon, A Global Telecommunications Company in Africa Harvard Business Review case study are -

Highly skilled collaborators

– Cameroon Orange 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 Orange Cameroon, A Global Telecommunications Company in Africa HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Effective Research and Development (R&D)

– Cameroon Orange 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 Orange Cameroon, A Global Telecommunications Company in Africa - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Digital Transformation in Global Business segment

- digital transformation varies from industry to industry. For Cameroon Orange digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Cameroon Orange 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.

High switching costs

– The high switching costs that Cameroon Orange 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.

Successful track record of launching new products

– Cameroon Orange has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Cameroon Orange 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

– Cameroon Orange 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 Cameroon Orange in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

High brand equity

– Cameroon Orange has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Cameroon Orange to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Ability to recruit top talent

– Cameroon Orange is one of the leading recruiters in the industry. Managers in the Orange Cameroon, A Global Telecommunications Company in Africa are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Organizational Resilience of Cameroon Orange

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Cameroon Orange does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Strong track record of project management

– Cameroon Orange is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Sustainable margins compare to other players in Global Business industry

– Orange Cameroon, A Global Telecommunications Company in Africa firm has clearly differentiated products in the market place. This has enabled Cameroon Orange to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Cameroon Orange to invest into research and development (R&D) and innovation.

Analytics focus

– Cameroon Orange 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 Miguel Rivera-Santos, Carlos Rufin 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.

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Weaknesses Orange Cameroon, A Global Telecommunications Company in Africa | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Orange Cameroon, A Global Telecommunications Company in Africa are -

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Orange Cameroon, A Global Telecommunications Company in Africa 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 Cameroon Orange has relatively successful track record of launching new products.

High operating costs

– Compare to the competitors, firm in the HBR case study Orange Cameroon, A Global Telecommunications Company in Africa 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 Cameroon Orange 's lucrative customers.

Capital Spending Reduction

– Even during the low interest decade, Cameroon Orange 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 Orange Cameroon, A Global Telecommunications Company in Africa, in the dynamic environment Cameroon Orange has struggled to respond to the nimble upstart competition. Cameroon Orange has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Cameroon Orange is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Orange Cameroon, A Global Telecommunications Company in Africa can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Skills based hiring

– The stress on hiring functional specialists at Cameroon Orange 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.

Increasing silos among functional specialists

– The organizational structure of Cameroon Orange is dominated by functional specialists. It is not different from other players in the Global Business segment. Cameroon Orange needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Cameroon Orange to focus more on services rather than just following the product oriented approach.

Low market penetration in new markets

– Outside its home market of Cameroon Orange, firm in the HBR case study Orange Cameroon, A Global Telecommunications Company in Africa needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

Workers concerns about automation

– As automation is fast increasing in the segment, Cameroon Orange 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 bargaining power of channel partners

– Because of the regulatory requirements, Miguel Rivera-Santos, Carlos Rufin suggests that, Cameroon Orange 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.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Orange Cameroon, A Global Telecommunications Company in Africa, is just above the industry average. Cameroon Orange 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.

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Opportunities Orange Cameroon, A Global Telecommunications Company in Africa | 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 Orange Cameroon, A Global Telecommunications Company in Africa are -

Developing new processes and practices

– Cameroon Orange 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 Cameroon Orange 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.

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 Cameroon Orange in the consumer business. Now Cameroon Orange can target international markets with far fewer capital restrictions requirements than the existing system.

Loyalty marketing

– Cameroon Orange 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.

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. Cameroon Orange 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. Cameroon Orange 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.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Cameroon Orange 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 Cameroon Orange 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.

Manufacturing automation

– Cameroon Orange 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 Cameroon Orange to increase its market reach. Cameroon Orange 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, Cameroon Orange 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.

Using analytics as competitive advantage

– Cameroon Orange 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 Orange Cameroon, A Global Telecommunications Company in Africa - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Cameroon Orange to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

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. Cameroon Orange can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Cameroon Orange 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 Cameroon Orange to hire the very best people irrespective of their geographical location.

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Threats Orange Cameroon, A Global Telecommunications Company in Africa External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Orange Cameroon, A Global Telecommunications Company in Africa are -

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. Cameroon Orange will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.

Regulatory challenges

– Cameroon Orange 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.

High dependence on third party suppliers

– Cameroon Orange 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.

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 Cameroon Orange.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Orange Cameroon, A Global Telecommunications Company in Africa, Cameroon Orange 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 .

Consumer confidence and its impact on Cameroon Orange 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.

Environmental challenges

– Cameroon Orange 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. Cameroon Orange can take advantage of this fund but it will also bring new competitors in the Global Business industry.

Technology acceleration in Forth Industrial Revolution

– Cameroon Orange has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Cameroon Orange 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.

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 Cameroon Orange business can come under increasing regulations regarding data privacy, data security, etc.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Cameroon Orange 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 Orange Cameroon, A Global Telecommunications Company in Africa .

Technology disruption because of hacks, piracy etc

– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.

Shortening product life cycle

– it is one of the major threat that Cameroon Orange is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Easy access to finance

– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Cameroon Orange can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

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Weighted SWOT Analysis of Orange Cameroon, A Global Telecommunications Company in Africa 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 Orange Cameroon, A Global Telecommunications Company in Africa 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 Orange Cameroon, A Global Telecommunications Company in Africa 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 Orange Cameroon, A Global Telecommunications Company in Africa 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 Orange Cameroon, A Global Telecommunications Company in Africa 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 Cameroon Orange needs to make to build a sustainable competitive advantage.

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