Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C)
This is the third and last part of a case series dealing with the distribution of FMCG (Fast Moving Consumer Goods) to low income areas (slums) in Kenya. It describes the situation in July 2008. In spite of its success, KasKazi is mainly used for short term promotions by its clients. This creates dry spells and a void in the market when a contract comes to an end. And Wanjohi's appetite has grown - he is considering expanding into neighbouring countries such as Uganda and Tanzania, and creating and promoting his own products. Learning objectives: The case series would be suitable for a core marketing course (dealing with the market challenge, and distribution and retail issues in Africa), a course on supply chain (distribution issues in Africa), an entrepreneurship course (dealing with business growth strategies) or a general management course. In all these courses, the case series can be used to illustrate the challenge and complexity of reaching low income customers in developing countries.
Authors :: Leif Sjoblom, Winifred Karugu, Lisa Schuepbach
Swot Analysis of "Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C)" written by Leif Sjoblom, Winifred Karugu, Lisa Schuepbach includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Kaskazi Dealing facing as an external strategic factors. Some of the topics covered in Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) case study are - Strategic Management Strategies, Marketing, Supply chain and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) casestudy better are - – wage bills are increasing, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies,
increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Kaskazi Dealing, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Kaskazi Dealing 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 Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) can be done for the following purposes –
1. Strategic planning using facts provided in Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) case study
2. Improving business portfolio management of Kaskazi Dealing
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 Kaskazi Dealing
Strengths Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Kaskazi Dealing in Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) Harvard Business Review case study are -
Ability to recruit top talent
– Kaskazi Dealing is one of the leading recruiters in the industry. Managers in the Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Kaskazi Dealing in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Kaskazi Dealing 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 Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) 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 Kaskazi Dealing 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
– Kaskazi Dealing 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 Leif Sjoblom, Winifred Karugu, Lisa Schuepbach 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
– Kaskazi Dealing has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Kaskazi Dealing to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Kaskazi Dealing has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Kaskazi Dealing has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Diverse revenue streams
– Kaskazi Dealing is present in almost all the verticals within the industry. This has provided firm in Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) 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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) firm has clearly differentiated products in the market place. This has enabled Kaskazi Dealing to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Kaskazi Dealing to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Kaskazi Dealing 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.
Innovation driven organization
– Kaskazi Dealing is one of the most innovative firm in sector. Manager in Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) are -
Skills based hiring
– The stress on hiring functional specialists at Kaskazi Dealing 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Leif Sjoblom, Winifred Karugu, Lisa Schuepbach suggests that, Kaskazi Dealing 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Kaskazi Dealing 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Kaskazi Dealing is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Kaskazi Dealing 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.
No frontier risks strategy
– After analyzing the HBR case study Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C), 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.
Slow to strategic competitive environment developments
– As Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) HBR case study mentions - Kaskazi Dealing 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.
Lack of clear differentiation of Kaskazi Dealing products
– To increase the profitability and margins on the products, Kaskazi Dealing needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) 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 Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) can leverage the sales team experience to cultivate customer relationships as Kaskazi Dealing is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Kaskazi Dealing is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Kaskazi Dealing needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Kaskazi Dealing to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C), it seems that the employees of Kaskazi Dealing 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.
Opportunities Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) | 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 Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) are -
Creating value in data economy
– The success of analytics program of Kaskazi Dealing has opened avenues for new revenue streams for the organization in the industry. This can help Kaskazi Dealing to build a more holistic ecosystem as suggested in the Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) case study. Kaskazi Dealing can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Kaskazi Dealing 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Kaskazi Dealing 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.
Buying journey improvements
– Kaskazi Dealing can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Better consumer reach
– The expansion of the 5G network will help Kaskazi Dealing to increase its market reach. Kaskazi Dealing 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.
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 Kaskazi Dealing in the consumer business. Now Kaskazi Dealing can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Kaskazi Dealing 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.
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 Kaskazi Dealing 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.
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. Kaskazi Dealing can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Kaskazi Dealing 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. Kaskazi Dealing 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.
Manufacturing automation
– Kaskazi Dealing 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.
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. Kaskazi Dealing can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Kaskazi Dealing 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.
Threats Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) are -
Environmental challenges
– Kaskazi Dealing 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. Kaskazi Dealing can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Kaskazi Dealing 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Kaskazi Dealing 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 Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) .
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. Kaskazi Dealing 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C), Kaskazi Dealing 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 .
High dependence on third party suppliers
– Kaskazi Dealing 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. Kaskazi Dealing can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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 Kaskazi Dealing.
Stagnating economy with rate increase
– Kaskazi Dealing can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Shortening product life cycle
– it is one of the major threat that Kaskazi Dealing is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Kaskazi Dealing needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) 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 Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) 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 Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) 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 Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) 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 Kaskazi Network Ltd - Distributing to the Bottom of the Pyramid (C) 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 Kaskazi Dealing needs to make to build a sustainable competitive advantage.
