Richard Fahey and Robert Saudek - Lighting Liberia SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Richard Fahey and Robert Saudek - Lighting Liberia
After successful careers as lawyers Richard Fahey and Robert Saudek set out to tackle a large-scale infrastructure challenge in a complex environment by increasing Liberian citizens' access to lighting solutions. They developed the Liberian Energy Network, which aimed to distribute solar light fixtures to citizens across the country, including some of the most remote regions. Working in Liberia presented a large set of challenges and difficulties, however Fahey and Saudek persevered.
Swot Analysis of "Richard Fahey and Robert Saudek - Lighting Liberia" written by Rosabeth Moss Kanter, Anne Arlinghaus includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Saudek Fahey facing as an external strategic factors. Some of the topics covered in Richard Fahey and Robert Saudek - Lighting Liberia case study are - Strategic Management Strategies, Innovation, International business, Joint ventures, Leadership, Marketing, Sustainability, Technology and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Richard Fahey and Robert Saudek - Lighting Liberia casestudy better are - – talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, increasing household debt because of falling income levels, increasing energy prices, central banks are concerned over increasing inflation, 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%, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Richard Fahey and Robert Saudek - Lighting Liberia
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Richard Fahey and Robert Saudek - Lighting Liberia case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Saudek Fahey, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Saudek Fahey 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 Richard Fahey and Robert Saudek - Lighting Liberia can be done for the following purposes –
1. Strategic planning using facts provided in Richard Fahey and Robert Saudek - Lighting Liberia case study
2. Improving business portfolio management of Saudek Fahey
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Saudek Fahey
Strengths Richard Fahey and Robert Saudek - Lighting Liberia | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Saudek Fahey in Richard Fahey and Robert Saudek - Lighting Liberia Harvard Business Review case study are -
Strong track record of project management
– Saudek Fahey is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Saudek Fahey in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the Richard Fahey and Robert Saudek - Lighting Liberia 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.
Learning organization
- Saudek Fahey 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 Saudek Fahey is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Richard Fahey and Robert Saudek - Lighting Liberia Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Saudek Fahey 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 Rosabeth Moss Kanter, Anne Arlinghaus 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.
High brand equity
– Saudek Fahey has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Saudek Fahey to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Innovation & Entrepreneurship field
– Saudek Fahey 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 Saudek Fahey in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Richard Fahey and Robert Saudek - Lighting Liberia firm has clearly differentiated products in the market place. This has enabled Saudek Fahey to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Saudek Fahey to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Saudek Fahey are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Ability to recruit top talent
– Saudek Fahey is one of the leading recruiters in the industry. Managers in the Richard Fahey and Robert Saudek - Lighting Liberia are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Effective Research and Development (R&D)
– Saudek Fahey 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 Richard Fahey and Robert Saudek - Lighting Liberia - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Saudek Fahey in the sector have low bargaining power. Richard Fahey and Robert Saudek - Lighting Liberia has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Saudek Fahey to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Richard Fahey and Robert Saudek - Lighting Liberia | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Richard Fahey and Robert Saudek - Lighting Liberia are -
No frontier risks strategy
– After analyzing the HBR case study Richard Fahey and Robert Saudek - Lighting Liberia, it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Richard Fahey and Robert Saudek - Lighting Liberia, it seems that the employees of Saudek Fahey 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.
Increasing silos among functional specialists
– The organizational structure of Saudek Fahey is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Saudek Fahey needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Saudek Fahey to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study Richard Fahey and Robert Saudek - Lighting Liberia 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 Richard Fahey and Robert Saudek - Lighting Liberia can leverage the sales team experience to cultivate customer relationships as Saudek Fahey is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Saudek Fahey, firm in the HBR case study Richard Fahey and Robert Saudek - Lighting Liberia needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Saudek Fahey 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 - Richard Fahey and Robert Saudek - Lighting Liberia should strive to include more intangible value offerings along with its core products and services.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Richard Fahey and Robert Saudek - Lighting Liberia 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 Saudek Fahey has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Saudek Fahey 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.
Slow decision making process
– As mentioned earlier in the report, Saudek Fahey has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Saudek Fahey even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Lack of clear differentiation of Saudek Fahey products
– To increase the profitability and margins on the products, Saudek Fahey needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to strategic competitive environment developments
– As Richard Fahey and Robert Saudek - Lighting Liberia HBR case study mentions - Saudek Fahey 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.
Opportunities Richard Fahey and Robert Saudek - Lighting Liberia | 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 Richard Fahey and Robert Saudek - Lighting Liberia are -
Creating value in data economy
– The success of analytics program of Saudek Fahey has opened avenues for new revenue streams for the organization in the industry. This can help Saudek Fahey to build a more holistic ecosystem as suggested in the Richard Fahey and Robert Saudek - Lighting Liberia case study. Saudek Fahey can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Saudek Fahey 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. Saudek Fahey 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Saudek Fahey can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Saudek Fahey 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 Innovation & Entrepreneurship segment.
Leveraging digital technologies
– Saudek Fahey 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.
Learning at scale
– Online learning technologies has now opened space for Saudek Fahey 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 Saudek Fahey in the consumer business. Now Saudek Fahey can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Saudek Fahey in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
Better consumer reach
– The expansion of the 5G network will help Saudek Fahey to increase its market reach. Saudek Fahey 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.
Manufacturing automation
– Saudek Fahey can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship 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.
Developing new processes and practices
– Saudek Fahey can develop new processes and procedures in Innovation & Entrepreneurship 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.
Using analytics as competitive advantage
– Saudek Fahey 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 Richard Fahey and Robert Saudek - Lighting Liberia - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Saudek Fahey to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Saudek Fahey 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 Saudek Fahey to hire the very best people irrespective of their geographical location.
Threats Richard Fahey and Robert Saudek - Lighting Liberia External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Richard Fahey and Robert Saudek - Lighting Liberia 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. Saudek Fahey 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.
Increasing wage structure of Saudek Fahey
– 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 Saudek Fahey.
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 Saudek Fahey in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Environmental challenges
– Saudek Fahey 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. Saudek Fahey can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Saudek Fahey 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 Richard Fahey and Robert Saudek - Lighting Liberia .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Saudek Fahey with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Richard Fahey and Robert Saudek - Lighting Liberia, Saudek Fahey may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
Technology acceleration in Forth Industrial Revolution
– Saudek Fahey has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Saudek Fahey needs to keep up with the evolution of technology in the Innovation & Entrepreneurship 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.
Consumer confidence and its impact on Saudek Fahey 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.
Shortening product life cycle
– it is one of the major threat that Saudek Fahey is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Saudek Fahey 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.
Easy access to finance
– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Saudek Fahey 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 Richard Fahey and Robert Saudek - Lighting Liberia 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 Richard Fahey and Robert Saudek - Lighting Liberia 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 Richard Fahey and Robert Saudek - Lighting Liberia 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 Richard Fahey and Robert Saudek - Lighting Liberia 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 Richard Fahey and Robert Saudek - Lighting Liberia 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 Saudek Fahey needs to make to build a sustainable competitive advantage.
