Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia
In 2003, a Namibian entrepreneur was deciding how to finance and manage the risks of an ecotourism, nature reserve, venture project. Explores the challenges facing an entrepreneur operating in an emerging market with imperfect local financial and legal institutions.
Authors :: Peter Hecht, Brooke Parry Hecht, Kavita Kapur MacLeod
Swot Analysis of "Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia" written by Peter Hecht, Brooke Parry Hecht, Kavita Kapur MacLeod includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Reserve Namibian facing as an external strategic factors. Some of the topics covered in Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia case study are - Strategic Management Strategies, Financial analysis, Financial management, Government, Risk management, Sustainability and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia casestudy better are - – supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, technology disruption, competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing household debt because of falling income levels, wage bills are increasing, etc
Introduction to SWOT Analysis of Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Reserve Namibian, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Reserve Namibian 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 Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia can be done for the following purposes –
1. Strategic planning using facts provided in Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia case study
2. Improving business portfolio management of Reserve Namibian
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 Reserve Namibian
Strengths Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Reserve Namibian in Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia Harvard Business Review case study are -
Learning organization
- Reserve Namibian 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 Reserve Namibian is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Reserve Namibian has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Reserve Namibian to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Reserve Namibian has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Reserve Namibian 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.
Operational resilience
– The operational resilience strategy in the Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia 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.
Cross disciplinary teams
– Horizontal connected teams at the Reserve Namibian 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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia firm has clearly differentiated products in the market place. This has enabled Reserve Namibian to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Reserve Namibian to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Reserve Namibian is one of the leading recruiters in the industry. Managers in the Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Reserve Namibian has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Highly skilled collaborators
– Reserve Namibian 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 Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Diverse revenue streams
– Reserve Namibian is present in almost all the verticals within the industry. This has provided firm in Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia 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.
Ability to lead change in Innovation & Entrepreneurship field
– Reserve Namibian 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 Reserve Namibian in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Reserve Namibian in the sector have low bargaining power. Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Reserve Namibian to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia, is just above the industry average. Reserve Namibian 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 decision making process
– As mentioned earlier in the report, Reserve Namibian 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. Reserve Namibian 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.
High cash cycle compare to competitors
Reserve Namibian 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia, in the dynamic environment Reserve Namibian has struggled to respond to the nimble upstart competition. Reserve Namibian has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Reserve Namibian 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.
Low market penetration in new markets
– Outside its home market of Reserve Namibian, firm in the HBR case study Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Reserve Namibian supply chain. Even after few cautionary changes mentioned in the HBR case study - Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Reserve Namibian vulnerable to further global disruptions in South East Asia.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia 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 Reserve Namibian has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, firm in the HBR case study Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia 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 Reserve Namibian 's lucrative customers.
Interest costs
– Compare to the competition, Reserve Namibian 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Reserve Namibian 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.
Opportunities Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia | 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 Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia are -
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. Reserve Namibian 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 Reserve Namibian 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.
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 Reserve Namibian in the consumer business. Now Reserve Namibian can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Reserve Namibian 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.
Developing new processes and practices
– Reserve Namibian 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Reserve Namibian is facing challenges because of the dominance of functional experts in the organization. Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia 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.
Better consumer reach
– The expansion of the 5G network will help Reserve Namibian to increase its market reach. Reserve Namibian 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Reserve Namibian 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 Reserve Namibian to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Reserve Namibian 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.
Manufacturing automation
– Reserve Namibian 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Reserve Namibian can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Reserve Namibian can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Low interest rates
– Even though inflation is raising its head in most developed economies, Reserve Namibian 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.
Threats Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia are -
Increasing wage structure of Reserve Namibian
– 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 Reserve Namibian.
Regulatory challenges
– Reserve Namibian 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 Innovation & Entrepreneurship industry regulations.
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. Reserve Namibian 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 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. Reserve Namibian needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Reserve Namibian 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.
Environmental challenges
– Reserve Namibian 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. Reserve Namibian can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Consumer confidence and its impact on Reserve Namibian 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.
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. Reserve Namibian can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Reserve Namibian.
Stagnating economy with rate increase
– Reserve Namibian 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Reserve Namibian with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Reserve Namibian in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship 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.
Weighted SWOT Analysis of Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia 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 Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia 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 Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia 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 Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia 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 Windhoek Nature Reserve: Financing a Sustainable Conservation Model in Namibia 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 Reserve Namibian needs to make to build a sustainable competitive advantage.