Case Study Description of Kreative Works: Extending the Boundaries
In April 2016, the owner of Kreative Works, a small-scale furniture manufacturer in Lucknow, Uttar Pradesh, India, decided to expand his company's product line in response to increased market competition and a shift in consumers' buying patterns and preferences. The intent was to extend the company's market reach from its traditional target of educational institutes and offices to a consumer market by marketing a premium lounge chair and a family of dining chairs. The owner also wanted to expand the market geographically. Kreative Works did not have the capacity to open multiple retail outlets. Given these circumstances, should the company market its new product line in a single retail outlet or through an exclusive dealer or distributor (a centralized channel structure), or by distributing its products through multiple distributors or retailers (a decentralized channel structure)? Tuhin Sengupta and Priyavrat Sanyal are affiliated with Indian Institute of Management Indore.
Swot Analysis of "Kreative Works: Extending the Boundaries" written by Tuhin Sengupta, Priyavrat Sanyal, Vishal Kakkar includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Kreative Priyavrat facing as an external strategic factors. Some of the topics covered in Kreative Works: Extending the Boundaries case study are - Strategic Management Strategies, Design, Manufacturing, Marketing and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Kreative Works: Extending the Boundaries casestudy better are - – central banks are concerned over increasing inflation, increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs,
increasing energy prices, increasing commodity prices, etc
Introduction to SWOT Analysis of Kreative Works: Extending the Boundaries
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Kreative Works: Extending the Boundaries case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Kreative Priyavrat, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Kreative Priyavrat 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 Kreative Works: Extending the Boundaries can be done for the following purposes –
1. Strategic planning using facts provided in Kreative Works: Extending the Boundaries case study
2. Improving business portfolio management of Kreative Priyavrat
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 Kreative Priyavrat
Strengths Kreative Works: Extending the Boundaries | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Kreative Priyavrat in Kreative Works: Extending the Boundaries Harvard Business Review case study are -
Effective Research and Development (R&D)
– Kreative Priyavrat 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 Kreative Works: Extending the Boundaries - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Cross disciplinary teams
– Horizontal connected teams at the Kreative Priyavrat 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.
Strong track record of project management
– Kreative Priyavrat is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Kreative Priyavrat is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Kreative Priyavrat is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Kreative Works: Extending the Boundaries Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Leadership & Managing People industry
– Kreative Works: Extending the Boundaries firm has clearly differentiated products in the market place. This has enabled Kreative Priyavrat to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Kreative Priyavrat to invest into research and development (R&D) and innovation.
Innovation driven organization
– Kreative Priyavrat is one of the most innovative firm in sector. Manager in Kreative Works: Extending the Boundaries Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Kreative Priyavrat in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Kreative Priyavrat has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Kreative Works: Extending the Boundaries 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.
Ability to lead change in Leadership & Managing People field
– Kreative Priyavrat 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 Kreative Priyavrat in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Kreative Priyavrat 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 Tuhin Sengupta, Priyavrat Sanyal, Vishal Kakkar 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.
Operational resilience
– The operational resilience strategy in the Kreative Works: Extending the Boundaries 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.
Low bargaining power of suppliers
– Suppliers of Kreative Priyavrat in the sector have low bargaining power. Kreative Works: Extending the Boundaries has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Kreative Priyavrat to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Kreative Works: Extending the Boundaries | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Kreative Works: Extending the Boundaries are -
High cash cycle compare to competitors
Kreative Priyavrat 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Kreative Priyavrat is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Kreative Works: Extending the Boundaries 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 Kreative Works: Extending the Boundaries HBR case study mentions - Kreative Priyavrat 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Kreative Works: Extending the Boundaries, in the dynamic environment Kreative Priyavrat has struggled to respond to the nimble upstart competition. Kreative Priyavrat has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Kreative Works: Extending the Boundaries, is just above the industry average. Kreative Priyavrat 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 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 Kreative Priyavrat supply chain. Even after few cautionary changes mentioned in the HBR case study - Kreative Works: Extending the Boundaries, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Kreative Priyavrat vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Kreative Priyavrat, firm in the HBR case study Kreative Works: Extending the Boundaries needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Skills based hiring
– The stress on hiring functional specialists at Kreative Priyavrat 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.
Slow decision making process
– As mentioned earlier in the report, Kreative Priyavrat 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. Kreative Priyavrat 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.
Products dominated business model
– Even though Kreative Priyavrat 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 - Kreative Works: Extending the Boundaries should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Kreative Priyavrat 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.
Opportunities Kreative Works: Extending the Boundaries | 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 Kreative Works: Extending the Boundaries are -
Building a culture of innovation
– managers at Kreative Priyavrat 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 Leadership & Managing People segment.
Better consumer reach
– The expansion of the 5G network will help Kreative Priyavrat to increase its market reach. Kreative Priyavrat 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.
Developing new processes and practices
– Kreative Priyavrat 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Kreative Priyavrat 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, Kreative Works: Extending the Boundaries, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Kreative Priyavrat can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Kreative Priyavrat can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Kreative Priyavrat 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Kreative Priyavrat can use these opportunities to build new business models that can help the communities that Kreative Priyavrat operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Kreative Priyavrat is facing challenges because of the dominance of functional experts in the organization. Kreative Works: Extending the Boundaries 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.
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 Kreative Priyavrat in the consumer business. Now Kreative Priyavrat can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Kreative Priyavrat in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Kreative Priyavrat 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 Kreative Priyavrat to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Kreative Priyavrat can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Kreative Works: Extending the Boundaries External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Kreative Works: Extending the Boundaries are -
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. Kreative Priyavrat can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Kreative Priyavrat 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.
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. Kreative Priyavrat 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.
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 Kreative Priyavrat in the Leadership & Managing People sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Kreative Priyavrat 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Kreative Works: Extending the Boundaries, Kreative Priyavrat 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 .
Increasing wage structure of Kreative Priyavrat
– 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 Kreative Priyavrat.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Kreative Priyavrat in the Leadership & Managing People industry. The Leadership & Managing People 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.
Consumer confidence and its impact on Kreative Priyavrat 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.
Shortening product life cycle
– it is one of the major threat that Kreative Priyavrat is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Kreative Priyavrat 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.
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. Kreative Priyavrat needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Kreative Works: Extending the Boundaries 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 Kreative Works: Extending the Boundaries 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 Kreative Works: Extending the Boundaries 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 Kreative Works: Extending the Boundaries 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 Kreative Works: Extending the Boundaries 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 Kreative Priyavrat needs to make to build a sustainable competitive advantage.