KayTek: Manufacturing Housing and Livelihoods in Haiti SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of KayTek: Manufacturing Housing and Livelihoods in Haiti
After a massive earthquake destroyed many buildings in Haiti, reconstruction has become a source of opportunity and competition for non-governmental organizations, international business and local companies. The Haitian chairman and CEO of a very successful, multi-million dollar information technology company wants to provide affordable quality housing, especially for the disadvantaged poor, using steel frame technology from his start-up, KayTek. What he has not yet determined is how to get his product to market. He has three options: to keep sales and construction in-house, to outsource, or to franchise in order to create opportunities for young Haitian engineers to become entrepreneurs. Each option has costs, in terms not only of finances and time but also of control of brand quality and accessibility.
Swot Analysis of "KayTek: Manufacturing Housing and Livelihoods in Haiti" written by David Wood, Taylor Sekhon includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Kaytek Haitian facing as an external strategic factors. Some of the topics covered in KayTek: Manufacturing Housing and Livelihoods in Haiti case study are - Strategic Management Strategies, Strategy and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the KayTek: Manufacturing Housing and Livelihoods in Haiti casestudy better are - – increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies,
increasing energy prices, geopolitical disruptions, etc
Introduction to SWOT Analysis of KayTek: Manufacturing Housing and Livelihoods in Haiti
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in KayTek: Manufacturing Housing and Livelihoods in Haiti case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Kaytek Haitian, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Kaytek Haitian 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 KayTek: Manufacturing Housing and Livelihoods in Haiti can be done for the following purposes –
1. Strategic planning using facts provided in KayTek: Manufacturing Housing and Livelihoods in Haiti case study
2. Improving business portfolio management of Kaytek Haitian
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Kaytek Haitian
Strengths KayTek: Manufacturing Housing and Livelihoods in Haiti | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Kaytek Haitian in KayTek: Manufacturing Housing and Livelihoods in Haiti Harvard Business Review case study are -
Ability to lead change in Leadership & Managing People field
– Kaytek Haitian 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 Kaytek Haitian in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Kaytek Haitian is one of the most innovative firm in sector. Manager in KayTek: Manufacturing Housing and Livelihoods in Haiti Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Kaytek Haitian is present in almost all the verticals within the industry. This has provided firm in KayTek: Manufacturing Housing and Livelihoods in Haiti 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.
Analytics focus
– Kaytek Haitian 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 David Wood, Taylor Sekhon 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.
Strong track record of project management
– Kaytek Haitian is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Kaytek Haitian in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Leadership & Managing People industry
– KayTek: Manufacturing Housing and Livelihoods in Haiti firm has clearly differentiated products in the market place. This has enabled Kaytek Haitian to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Kaytek Haitian to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the KayTek: Manufacturing Housing and Livelihoods in Haiti 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 Leadership & Managing People segment
- digital transformation varies from industry to industry. For Kaytek Haitian digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Kaytek Haitian 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.
Organizational Resilience of Kaytek Haitian
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Kaytek Haitian does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Kaytek Haitian 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
– Kaytek Haitian has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Kaytek Haitian to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses KayTek: Manufacturing Housing and Livelihoods in Haiti | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of KayTek: Manufacturing Housing and Livelihoods in Haiti are -
Interest costs
– Compare to the competition, Kaytek Haitian has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow to strategic competitive environment developments
– As KayTek: Manufacturing Housing and Livelihoods in Haiti HBR case study mentions - Kaytek Haitian 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.
Increasing silos among functional specialists
– The organizational structure of Kaytek Haitian is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Kaytek Haitian needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Kaytek Haitian to focus more on services rather than just following the product 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 Kaytek Haitian supply chain. Even after few cautionary changes mentioned in the HBR case study - KayTek: Manufacturing Housing and Livelihoods in Haiti, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Kaytek Haitian vulnerable to further global disruptions in South East Asia.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the KayTek: Manufacturing Housing and Livelihoods in Haiti 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 Kaytek Haitian has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Kaytek Haitian 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study KayTek: Manufacturing Housing and Livelihoods in Haiti, it seems that the employees of Kaytek Haitian 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Kaytek Haitian is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study KayTek: Manufacturing Housing and Livelihoods in Haiti can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study KayTek: Manufacturing Housing and Livelihoods in Haiti 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 KayTek: Manufacturing Housing and Livelihoods in Haiti can leverage the sales team experience to cultivate customer relationships as Kaytek Haitian is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study KayTek: Manufacturing Housing and Livelihoods in Haiti, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People 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, Kaytek Haitian 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. Kaytek Haitian 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 KayTek: Manufacturing Housing and Livelihoods in Haiti | 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 KayTek: Manufacturing Housing and Livelihoods in Haiti are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Kaytek Haitian can use these opportunities to build new business models that can help the communities that Kaytek Haitian operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Developing new processes and practices
– Kaytek Haitian can develop new processes and procedures in Leadership & Managing People 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.
Better consumer reach
– The expansion of the 5G network will help Kaytek Haitian to increase its market reach. Kaytek Haitian 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.
Leveraging digital technologies
– Kaytek Haitian 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Kaytek Haitian 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. Kaytek Haitian 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Kaytek Haitian can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Kaytek Haitian 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Kaytek Haitian 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.
Buying journey improvements
– Kaytek Haitian can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. KayTek: Manufacturing Housing and Livelihoods in Haiti 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Kaytek Haitian 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, KayTek: Manufacturing Housing and Livelihoods in Haiti, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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 Kaytek Haitian in the consumer business. Now Kaytek Haitian can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Kaytek Haitian 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 Kaytek Haitian to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Kaytek Haitian can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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 KayTek: Manufacturing Housing and Livelihoods in Haiti External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study KayTek: Manufacturing Housing and Livelihoods in Haiti are -
Consumer confidence and its impact on Kaytek Haitian 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Kaytek Haitian 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 KayTek: Manufacturing Housing and Livelihoods in Haiti .
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 Kaytek Haitian.
Shortening product life cycle
– it is one of the major threat that Kaytek Haitian is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study KayTek: Manufacturing Housing and Livelihoods in Haiti, Kaytek Haitian may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
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.
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. Kaytek Haitian needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Kaytek Haitian has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Kaytek Haitian needs to keep up with the evolution of technology in the Leadership & Managing People 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
– Kaytek Haitian 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.
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 Kaytek Haitian in the Leadership & Managing People sector and impact the bottomline of the organization.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Kaytek Haitian can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Stagnating economy with rate increase
– Kaytek Haitian 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.
Regulatory challenges
– Kaytek Haitian 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 Leadership & Managing People industry regulations.
Weighted SWOT Analysis of KayTek: Manufacturing Housing and Livelihoods in Haiti 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 KayTek: Manufacturing Housing and Livelihoods in Haiti 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 KayTek: Manufacturing Housing and Livelihoods in Haiti 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 KayTek: Manufacturing Housing and Livelihoods in Haiti 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 KayTek: Manufacturing Housing and Livelihoods in Haiti 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 Kaytek Haitian needs to make to build a sustainable competitive advantage.