KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of KenCall - Can Nik Nesbitt's Venture Succeed in Kenya?
Nik Nesbitt is preparing a presentation of his Kenyan contact center startup to a group of angel investors visiting for the first time. The task has given him cause for some soul searching: has it been worth it to battle the impoverished infrastructure and inappropriate government regulations to launch this venture?
Swot Analysis of "KenCall - Can Nik Nesbitt's Venture Succeed in Kenya?" written by Daniel J. Isenberg includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Nik Kencall facing as an external strategic factors. Some of the topics covered in KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? case study are - Strategic Management Strategies, Entrepreneurship, Supply chain and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? casestudy better are - – there is backlash against globalization, increasing commodity prices, increasing energy prices, talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google,
increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of KenCall - Can Nik Nesbitt's Venture Succeed in Kenya?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Nik Kencall, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Nik Kencall 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 KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? can be done for the following purposes –
1. Strategic planning using facts provided in KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? case study
2. Improving business portfolio management of Nik Kencall
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 Nik Kencall
Strengths KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Nik Kencall in KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Nik Kencall 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 lead change in Innovation & Entrepreneurship field
– Nik Kencall 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 Nik Kencall in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Nik Kencall digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Nik Kencall 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.
Strong track record of project management
– Nik Kencall is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Nik Kencall in the sector have low bargaining power. KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Nik Kencall to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Nik Kencall is one of the leading recruiters in the industry. Managers in the KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Nik Kencall has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Nik Kencall to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Nik Kencall 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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? firm has clearly differentiated products in the market place. This has enabled Nik Kencall to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Nik Kencall to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? 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.
Training and development
– Nik Kencall has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? 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.
Innovation driven organization
– Nik Kencall is one of the most innovative firm in sector. Manager in KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? are -
Products dominated business model
– Even though Nik Kencall 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 - KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, Daniel J. Isenberg suggests that, Nik Kencall 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? 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 Nik Kencall has relatively successful track record of launching new products.
High cash cycle compare to competitors
Nik Kencall 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.
High operating costs
– Compare to the competitors, firm in the HBR case study KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? 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 Nik Kencall 's lucrative customers.
Skills based hiring
– The stress on hiring functional specialists at Nik Kencall 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.
Lack of clear differentiation of Nik Kencall products
– To increase the profitability and margins on the products, Nik Kencall needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of Nik Kencall, firm in the HBR case study KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
No frontier risks strategy
– After analyzing the HBR case study KenCall - Can Nik Nesbitt's Venture Succeed in Kenya?, 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 decision making process
– As mentioned earlier in the report, Nik Kencall 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. Nik Kencall 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Nik Kencall is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? | 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 KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? are -
Learning at scale
– Online learning technologies has now opened space for Nik Kencall 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.
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 Nik Kencall 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.
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 Nik Kencall in the consumer business. Now Nik Kencall can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Nik Kencall 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.
Using analytics as competitive advantage
– Nik Kencall 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 KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Nik Kencall 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 Nik Kencall 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 Nik Kencall to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Nik Kencall can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? 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.
Developing new processes and practices
– Nik Kencall 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.
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. Nik Kencall can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Nik Kencall 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Nik Kencall can use these opportunities to build new business models that can help the communities that Nik Kencall operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Nik Kencall 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.
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. Nik Kencall can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? are -
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 Nik Kencall in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Environmental challenges
– Nik Kencall 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. Nik Kencall can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
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. Nik Kencall can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Nik Kencall 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.
Technology acceleration in Forth Industrial Revolution
– Nik Kencall has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Nik Kencall 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.
High dependence on third party suppliers
– Nik Kencall 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.
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 Nik Kencall business can come under increasing regulations regarding data privacy, data security, etc.
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.
Stagnating economy with rate increase
– Nik Kencall 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.
Consumer confidence and its impact on Nik Kencall 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.
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 Nik Kencall.
Regulatory challenges
– Nik Kencall 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.
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. Nik Kencall needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Weighted SWOT Analysis of KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? 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 KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? 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 KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? 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 KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? 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 KenCall - Can Nik Nesbitt's Venture Succeed in Kenya? 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 Nik Kencall needs to make to build a sustainable competitive advantage.