INDE and the Emprededores Juveniles de Nicaragua, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of INDE and the Emprededores Juveniles de Nicaragua, Spanish Version
The Emprendedores Juveniles de Nicaragua (EJN, Nicaragua's Young Entrepreneurs) program was created in 1991 as an affiliate of Junior Achievement International (JAI). Since 1997, EJN developed a new approach to JAI's traditional model for young entrepreneurs' education by choosing youths at risk to participate in its programs. Although the new young entrepreneurs' model managed to get ongoing support from UNICEF, the traditional program, basically funded by private sector contributions, lost momentum and finally had no beneficiaries in 2000. In late 2002, the program's executive director had to find strong support for the traditional program and expected to keep or increase the number of beneficiaries in the new format. Provides information on the social programs developed by three private companies--Texaco, Pizza Hut, and Coca Cola--and their relationship with EJN.
Authors :: Monica Azofeifa, Francisco Leguizamon
Topics :: Innovation & Entrepreneurship
Tags :: Social enterprise, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "INDE and the Emprededores Juveniles de Nicaragua, Spanish Version" written by Monica Azofeifa, Francisco Leguizamon includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ejn Juveniles facing as an external strategic factors. Some of the topics covered in INDE and the Emprededores Juveniles de Nicaragua, Spanish Version case study are - Strategic Management Strategies, Social enterprise, Social responsibility and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the INDE and the Emprededores Juveniles de Nicaragua, Spanish Version casestudy better are - – geopolitical disruptions, technology disruption, digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, increasing commodity prices, there is backlash against globalization, challanges to central banks by blockchain based private currencies,
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 INDE and the Emprededores Juveniles de Nicaragua, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in INDE and the Emprededores Juveniles de Nicaragua, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ejn Juveniles, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ejn Juveniles 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 INDE and the Emprededores Juveniles de Nicaragua, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in INDE and the Emprededores Juveniles de Nicaragua, Spanish Version case study
2. Improving business portfolio management of Ejn Juveniles
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 Ejn Juveniles
Strengths INDE and the Emprededores Juveniles de Nicaragua, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ejn Juveniles in INDE and the Emprededores Juveniles de Nicaragua, Spanish Version Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Ejn Juveniles in the sector have low bargaining power. INDE and the Emprededores Juveniles de Nicaragua, Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ejn Juveniles to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Ejn Juveniles in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– Ejn Juveniles has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ejn Juveniles 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.
Innovation driven organization
– Ejn Juveniles is one of the most innovative firm in sector. Manager in INDE and the Emprededores Juveniles de Nicaragua, Spanish Version Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Ejn Juveniles 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.
High brand equity
– Ejn Juveniles has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ejn Juveniles to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Innovation & Entrepreneurship field
– Ejn Juveniles 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 Ejn Juveniles in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– INDE and the Emprededores Juveniles de Nicaragua, Spanish Version firm has clearly differentiated products in the market place. This has enabled Ejn Juveniles to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Ejn Juveniles to invest into research and development (R&D) and innovation.
Strong track record of project management
– Ejn Juveniles is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy in the INDE and the Emprededores Juveniles de Nicaragua, Spanish Version 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.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Ejn Juveniles digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ejn Juveniles 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.
Highly skilled collaborators
– Ejn Juveniles 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 INDE and the Emprededores Juveniles de Nicaragua, Spanish Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses INDE and the Emprededores Juveniles de Nicaragua, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of INDE and the Emprededores Juveniles de Nicaragua, Spanish Version are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study INDE and the Emprededores Juveniles de Nicaragua, Spanish Version, it seems that the employees of Ejn Juveniles 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.
Products dominated business model
– Even though Ejn Juveniles 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 - INDE and the Emprededores Juveniles de Nicaragua, Spanish Version should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Ejn Juveniles is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Ejn Juveniles needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ejn Juveniles to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study INDE and the Emprededores Juveniles de Nicaragua, Spanish Version 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 INDE and the Emprededores Juveniles de Nicaragua, Spanish Version can leverage the sales team experience to cultivate customer relationships as Ejn Juveniles is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Ejn Juveniles 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 Ejn Juveniles, firm in the HBR case study INDE and the Emprededores Juveniles de Nicaragua, Spanish Version needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As INDE and the Emprededores Juveniles de Nicaragua, Spanish Version HBR case study mentions - Ejn Juveniles 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the INDE and the Emprededores Juveniles de Nicaragua, Spanish Version 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 Ejn Juveniles has relatively successful track record of launching new products.
High bargaining power of channel partners
– Because of the regulatory requirements, Monica Azofeifa, Francisco Leguizamon suggests that, Ejn Juveniles 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 operating costs
– Compare to the competitors, firm in the HBR case study INDE and the Emprededores Juveniles de Nicaragua, Spanish Version 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 Ejn Juveniles 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Ejn Juveniles 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. Ejn Juveniles 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.
Opportunities INDE and the Emprededores Juveniles de Nicaragua, Spanish Version | 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 INDE and the Emprededores Juveniles de Nicaragua, Spanish Version are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ejn Juveniles is facing challenges because of the dominance of functional experts in the organization. INDE and the Emprededores Juveniles de Nicaragua, Spanish Version 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.
Buying journey improvements
– Ejn Juveniles can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. INDE and the Emprededores Juveniles de Nicaragua, Spanish Version 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 Ejn Juveniles to increase its market reach. Ejn Juveniles 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.
Using analytics as competitive advantage
– Ejn Juveniles 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 INDE and the Emprededores Juveniles de Nicaragua, Spanish Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ejn Juveniles to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Ejn Juveniles 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.
Building a culture of innovation
– managers at Ejn Juveniles can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Innovation & Entrepreneurship segment.
Leveraging digital technologies
– Ejn Juveniles 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.
Creating value in data economy
– The success of analytics program of Ejn Juveniles has opened avenues for new revenue streams for the organization in the industry. This can help Ejn Juveniles to build a more holistic ecosystem as suggested in the INDE and the Emprededores Juveniles de Nicaragua, Spanish Version case study. Ejn Juveniles can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Ejn Juveniles 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. Ejn Juveniles 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.
Learning at scale
– Online learning technologies has now opened space for Ejn Juveniles 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Ejn Juveniles 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ejn Juveniles 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, INDE and the Emprededores Juveniles de Nicaragua, Spanish Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Ejn Juveniles 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.
Threats INDE and the Emprededores Juveniles de Nicaragua, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study INDE and the Emprededores Juveniles de Nicaragua, Spanish Version are -
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.
Technology acceleration in Forth Industrial Revolution
– Ejn Juveniles has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Ejn Juveniles needs to keep up with the evolution of technology in the Innovation & Entrepreneurship sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Consumer confidence and its impact on Ejn Juveniles 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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study INDE and the Emprededores Juveniles de Nicaragua, Spanish Version, Ejn Juveniles 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 .
Shortening product life cycle
– it is one of the major threat that Ejn Juveniles is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Ejn Juveniles can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ejn Juveniles with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ejn Juveniles 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 INDE and the Emprededores Juveniles de Nicaragua, Spanish Version .
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 Ejn Juveniles in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Regulatory challenges
– Ejn Juveniles 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.
Increasing wage structure of Ejn Juveniles
– 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 Ejn Juveniles.
Environmental challenges
– Ejn Juveniles 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. Ejn Juveniles can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Weighted SWOT Analysis of INDE and the Emprededores Juveniles de Nicaragua, Spanish Version 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 INDE and the Emprededores Juveniles de Nicaragua, Spanish Version 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 INDE and the Emprededores Juveniles de Nicaragua, Spanish Version 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 INDE and the Emprededores Juveniles de Nicaragua, Spanish Version 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 INDE and the Emprededores Juveniles de Nicaragua, Spanish Version 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 Ejn Juveniles needs to make to build a sustainable competitive advantage.