Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia
Mrs. Ebtissam Algosaibi has created the leading high end jewelry company in the Middle East, Erum Jewelry, based in her home town of Alkhobar, Saudi Arabia. She believes Erum has the potential to be a world player similar to Cartier and Chopard. How should she expand Erum beyond the Saudi market? The case also deals with the new opportunities and old challenges for women entrepreneurs in Saudi Arabia and the Middle East.
Swot Analysis of "Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia" written by Daniel J. Isenberg includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Erum Saudi facing as an external strategic factors. Some of the topics covered in Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia case study are - Strategic Management Strategies, Gender, Marketing and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia casestudy better are - – technology disruption, increasing energy prices, supply chains are disrupted by pandemic , there is backlash against globalization, increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs,
customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Erum Saudi, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Erum Saudi 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 Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia can be done for the following purposes –
1. Strategic planning using facts provided in Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia case study
2. Improving business portfolio management of Erum Saudi
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 Erum Saudi
Strengths Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Erum Saudi in Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia Harvard Business Review case study are -
Strong track record of project management
– Erum Saudi is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Erum Saudi 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 Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Erum Saudi has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Erum Saudi 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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia firm has clearly differentiated products in the market place. This has enabled Erum Saudi to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Erum Saudi to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia 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.
High switching costs
– The high switching costs that Erum Saudi 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.
Highly skilled collaborators
– Erum Saudi 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 Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Innovation & Entrepreneurship field
– Erum Saudi 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 Erum Saudi in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Erum Saudi in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Erum Saudi is one of the most innovative firm in sector. Manager in Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Erum Saudi 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 Daniel J. Isenberg 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.
Diverse revenue streams
– Erum Saudi is present in almost all the verticals within the industry. This has provided firm in Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia 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.
Weaknesses Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia are -
High bargaining power of channel partners
– Because of the regulatory requirements, Daniel J. Isenberg suggests that, Erum Saudi 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.
Low market penetration in new markets
– Outside its home market of Erum Saudi, firm in the HBR case study Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia 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 Erum Saudi 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Erum Saudi is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow to strategic competitive environment developments
– As Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia HBR case study mentions - Erum Saudi 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.
Products dominated business model
– Even though Erum Saudi 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 - Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Erum Saudi 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. Erum Saudi 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.
Skills based hiring
– The stress on hiring functional specialists at Erum Saudi 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 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 Erum Saudi supply chain. Even after few cautionary changes mentioned in the HBR case study - Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Erum Saudi vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia, is just above the industry average. Erum Saudi 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.
High cash cycle compare to competitors
Erum Saudi 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.
Opportunities Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia | 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 Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia are -
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. Erum Saudi can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Erum Saudi 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Erum Saudi is facing challenges because of the dominance of functional experts in the organization. Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia 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.
Manufacturing automation
– Erum Saudi 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Erum Saudi 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.
Creating value in data economy
– The success of analytics program of Erum Saudi has opened avenues for new revenue streams for the organization in the industry. This can help Erum Saudi to build a more holistic ecosystem as suggested in the Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia case study. Erum Saudi can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Erum Saudi 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.
Using analytics as competitive advantage
– Erum Saudi 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 Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Erum Saudi 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 Erum Saudi 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 Erum Saudi to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Erum Saudi to increase its market reach. Erum Saudi 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Erum Saudi can use these opportunities to build new business models that can help the communities that Erum Saudi operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Buying journey improvements
– Erum Saudi can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia 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.
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. Erum Saudi can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Erum Saudi 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.
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 Erum Saudi business can come under increasing regulations regarding data privacy, data security, etc.
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 Erum Saudi
– 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 Erum Saudi.
Environmental challenges
– Erum Saudi 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. Erum Saudi can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Shortening product life cycle
– it is one of the major threat that Erum Saudi is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Erum Saudi with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Erum Saudi 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 dependence on third party suppliers
– Erum Saudi 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.
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 Erum Saudi.
Consumer confidence and its impact on Erum Saudi 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.
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. Erum Saudi 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. Erum Saudi needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia 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 Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia 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 Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia 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 Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia 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 Mrs. Ebtissam Algosaibi: An Entrepreneur in the Kingdom of Saudi Arabia 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 Erum Saudi needs to make to build a sustainable competitive advantage.
