Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version
To maximize their effectiveness, color cases should be printed in color.Mibanco, Peru's leading microfinance bank, faces intense competition as the banking industry rushes into low income segments. Companion video clips bring into the classroom the contemporary reality of a world-class microfinance institution, where the unpaved streets and cluttered markets of the loan officer coexist with the sophistication of technical financial analysis and premier professional management. Rafael Llosa, the General Manager of Mibanco, must find the way to maintain the financial performance of one of Peru's most profitable banks and meet the strategic growth goals set by his board while facing the most aggressive competitive scenario in the 25-year history of microfinance in Peru. Courseware No. 9-309-701, "Microfinance: An Operating Perspective," contains five chapters filmed at Mibanco: Introduction, Competition, Marketing, Operations and Human Relations.
Swot Analysis of "Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version" written by Michael Chu, Gustavo A. Herrero includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Microfinance Mibanco facing as an external strategic factors. Some of the topics covered in Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version case study are - Strategic Management Strategies, Competition, Emerging markets, Entrepreneurial finance, Growth strategy, Marketing and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version casestudy better are - – geopolitical disruptions, increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, there is backlash against globalization, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing inequality as vast percentage of new income is going to the top 1%,
technology disruption, wage bills are increasing, etc
Introduction to SWOT Analysis of Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Microfinance Mibanco, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Microfinance Mibanco 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 Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version case study
2. Improving business portfolio management of Microfinance Mibanco
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 Microfinance Mibanco
Strengths Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Microfinance Mibanco in Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version Harvard Business Review case study are -
Learning organization
- Microfinance Mibanco 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 Microfinance Mibanco is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Microfinance Mibanco in the sector have low bargaining power. Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Microfinance Mibanco to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Microfinance Mibanco in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the Mibanco: Meeting the Mainstreaming of Microfinance, 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.
Organizational Resilience of Microfinance Mibanco
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Microfinance Mibanco does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Microfinance Mibanco 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 Michael Chu, Gustavo A. Herrero 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.
Innovation driven organization
– Microfinance Mibanco is one of the most innovative firm in sector. Manager in Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Microfinance Mibanco digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Microfinance Mibanco 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.
High brand equity
– Microfinance Mibanco has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Microfinance Mibanco to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Microfinance Mibanco 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 Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Microfinance Mibanco is present in almost all the verticals within the industry. This has provided firm in Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version 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.
Successful track record of launching new products
– Microfinance Mibanco has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Microfinance Mibanco 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.
Weaknesses Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version, in the dynamic environment Microfinance Mibanco has struggled to respond to the nimble upstart competition. Microfinance Mibanco has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Microfinance Mibanco 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 to strategic competitive environment developments
– As Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version HBR case study mentions - Microfinance Mibanco 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.
No frontier risks strategy
– After analyzing the HBR case study Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version, 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.
Need for greater diversity
– Microfinance Mibanco has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Capital Spending Reduction
– Even during the low interest decade, Microfinance Mibanco 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Microfinance Mibanco 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 Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version, it seems that the employees of Microfinance Mibanco 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Mibanco: Meeting the Mainstreaming of Microfinance, 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 Microfinance Mibanco 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Microfinance Mibanco is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Microfinance Mibanco products
– To increase the profitability and margins on the products, Microfinance Mibanco needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Mibanco: Meeting the Mainstreaming of Microfinance, 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 Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version are -
Creating value in data economy
– The success of analytics program of Microfinance Mibanco has opened avenues for new revenue streams for the organization in the industry. This can help Microfinance Mibanco to build a more holistic ecosystem as suggested in the Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version case study. Microfinance Mibanco can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Microfinance Mibanco 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Microfinance Mibanco can use these opportunities to build new business models that can help the communities that Microfinance Mibanco operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Using analytics as competitive advantage
– Microfinance Mibanco 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 Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Microfinance Mibanco 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 Microfinance Mibanco 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.
Leveraging digital technologies
– Microfinance Mibanco 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Microfinance Mibanco 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.
Buying journey improvements
– Microfinance Mibanco can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Mibanco: Meeting the Mainstreaming of Microfinance, 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Microfinance Mibanco 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 Microfinance Mibanco to hire the very best people irrespective of their geographical location.
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 Microfinance Mibanco in the consumer business. Now Microfinance Mibanco can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Microfinance Mibanco 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.
Manufacturing automation
– Microfinance Mibanco 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Microfinance Mibanco is facing challenges because of the dominance of functional experts in the organization. Mibanco: Meeting the Mainstreaming of Microfinance, 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.
Threats Mibanco: Meeting the Mainstreaming of Microfinance, 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 Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version, Microfinance Mibanco 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 .
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. Microfinance Mibanco can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Microfinance Mibanco
– 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 Microfinance Mibanco.
Technology acceleration in Forth Industrial Revolution
– Microfinance Mibanco has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Microfinance Mibanco 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.
Environmental challenges
– Microfinance Mibanco 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. Microfinance Mibanco can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Consumer confidence and its impact on Microfinance Mibanco 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.
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 Microfinance Mibanco in the Leadership & Managing People sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Microfinance Mibanco 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.
Shortening product life cycle
– it is one of the major threat that Microfinance Mibanco is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Microfinance Mibanco 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 Mibanco: Meeting the Mainstreaming of Microfinance, Spanish Version .
Stagnating economy with rate increase
– Microfinance Mibanco 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.
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. Microfinance Mibanco 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 Mibanco: Meeting the Mainstreaming of Microfinance, 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 Mibanco: Meeting the Mainstreaming of Microfinance, 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 Mibanco: Meeting the Mainstreaming of Microfinance, 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 Mibanco: Meeting the Mainstreaming of Microfinance, 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 Mibanco: Meeting the Mainstreaming of Microfinance, 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 Microfinance Mibanco needs to make to build a sustainable competitive advantage.