Raju Omlet: Expanding in the United Arab Emirates SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Raju Omlet: Expanding in the United Arab Emirates
Raju Omlet is a restaurant in Dubai that is famous for making egg preparations that appeal to the Indian expatriate population. A father and his son jointly manage the venture, and they are both very happy with the way the business has shaped up in the last two years. An expansion is inevitable, but how should it be carried out? The partners are also exploring the option of offering home delivery service. A meeting has been called to try to find answers to two questions: Would it be possible to sustain the expansion with a single product offering, and would diversifying the product range kill the restaurant's unique competitive advantage? Kirti Khanzode is affiliated with Institute of Management Technology Dubai. Sandeep Puri is affiliated with Institute of Management Technology, Ghaziabad.
Swot Analysis of "Raju Omlet: Expanding in the United Arab Emirates" written by Kirti Khanzode, Sandeep Puri includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Omlet Raju facing as an external strategic factors. Some of the topics covered in Raju Omlet: Expanding in the United Arab Emirates case study are - Strategic Management Strategies, Customers and Global Business.
Some of the macro environment factors that can be used to understand the Raju Omlet: Expanding in the United Arab Emirates casestudy better are - – wage bills are increasing, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, geopolitical disruptions, there is backlash against globalization,
increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Raju Omlet: Expanding in the United Arab Emirates
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Raju Omlet: Expanding in the United Arab Emirates case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Omlet Raju, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Omlet Raju 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 Raju Omlet: Expanding in the United Arab Emirates can be done for the following purposes –
1. Strategic planning using facts provided in Raju Omlet: Expanding in the United Arab Emirates case study
2. Improving business portfolio management of Omlet Raju
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 Omlet Raju
Strengths Raju Omlet: Expanding in the United Arab Emirates | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Omlet Raju in Raju Omlet: Expanding in the United Arab Emirates Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Omlet Raju 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.
Analytics focus
– Omlet Raju 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 Kirti Khanzode, Sandeep Puri 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.
Superior customer experience
– The customer experience strategy of Omlet Raju in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Omlet Raju has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Omlet Raju 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.
Low bargaining power of suppliers
– Suppliers of Omlet Raju in the sector have low bargaining power. Raju Omlet: Expanding in the United Arab Emirates has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Omlet Raju to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Omlet Raju
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Omlet Raju does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Omlet Raju is present in almost all the verticals within the industry. This has provided firm in Raju Omlet: Expanding in the United Arab Emirates 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.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Omlet Raju digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Omlet Raju 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.
Highly skilled collaborators
– Omlet Raju 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 Raju Omlet: Expanding in the United Arab Emirates HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Omlet Raju has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Raju Omlet: Expanding in the United Arab Emirates 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
– Omlet Raju is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Omlet Raju 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 Raju Omlet: Expanding in the United Arab Emirates - 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 Raju Omlet: Expanding in the United Arab Emirates | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Raju Omlet: Expanding in the United Arab Emirates are -
Increasing silos among functional specialists
– The organizational structure of Omlet Raju is dominated by functional specialists. It is not different from other players in the Global Business segment. Omlet Raju needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Omlet Raju to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Omlet Raju 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Raju Omlet: Expanding in the United Arab Emirates, it seems that the employees of Omlet Raju don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Raju Omlet: Expanding in the United Arab Emirates, is just above the industry average. Omlet Raju 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.
Need for greater diversity
– Omlet Raju 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.
Aligning sales with marketing
– It come across in the case study Raju Omlet: Expanding in the United Arab Emirates 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 Raju Omlet: Expanding in the United Arab Emirates can leverage the sales team experience to cultivate customer relationships as Omlet Raju is planning to shift buying processes online.
High cash cycle compare to competitors
Omlet Raju 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 Raju Omlet: Expanding in the United Arab Emirates HBR case study mentions - Omlet Raju 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Raju Omlet: Expanding in the United Arab Emirates 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 Omlet Raju has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Omlet Raju, firm in the HBR case study Raju Omlet: Expanding in the United Arab Emirates needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Omlet Raju products
– To increase the profitability and margins on the products, Omlet Raju needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Raju Omlet: Expanding in the United Arab Emirates | 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 Raju Omlet: Expanding in the United Arab Emirates are -
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 Omlet Raju 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.
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. Omlet Raju can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Omlet Raju can use these opportunities to build new business models that can help the communities that Omlet Raju operates in. Secondly it can use opportunities from government spending in Global Business sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Omlet Raju 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 Omlet Raju 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 Omlet Raju 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 Omlet Raju 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.
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. Omlet Raju 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. Omlet Raju 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Omlet Raju 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.
Leveraging digital technologies
– Omlet Raju 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Omlet Raju is facing challenges because of the dominance of functional experts in the organization. Raju Omlet: Expanding in the United Arab Emirates 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.
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. Omlet Raju can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Omlet Raju 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.
Creating value in data economy
– The success of analytics program of Omlet Raju has opened avenues for new revenue streams for the organization in the industry. This can help Omlet Raju to build a more holistic ecosystem as suggested in the Raju Omlet: Expanding in the United Arab Emirates case study. Omlet Raju can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Raju Omlet: Expanding in the United Arab Emirates External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Raju Omlet: Expanding in the United Arab Emirates 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. Omlet Raju needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Omlet Raju 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.
Regulatory challenges
– Omlet Raju 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.
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.
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 Omlet Raju 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, Omlet Raju 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 Raju Omlet: Expanding in the United Arab Emirates .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Omlet Raju with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Omlet Raju 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.
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.
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 Omlet Raju in the Global Business sector and impact the bottomline of the organization.
Technology acceleration in Forth Industrial Revolution
– Omlet Raju has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Omlet Raju 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Omlet Raju 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.
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. Omlet Raju can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Raju Omlet: Expanding in the United Arab Emirates 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 Raju Omlet: Expanding in the United Arab Emirates 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 Raju Omlet: Expanding in the United Arab Emirates 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 Raju Omlet: Expanding in the United Arab Emirates 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 Raju Omlet: Expanding in the United Arab Emirates 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 Omlet Raju needs to make to build a sustainable competitive advantage.
