Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership
The Fleet Safety project was developed in response to the needs of the members of the Fleet Forum, an informal collaborating body and independent knowledge centre for fleet management in the humanitarian sector. With the backing of Danish government aid agency Danida, the Fleet Safety project drew on the resources of government, the humanitarian sector and private companies to develop, test and disseminate a road safety toolkit for humanitarian organizations operating in the developing world. The toolkit was tested within the Kenya offices of six major humanitarian organizations before the definitive version was to be disseminated and promoted globally.
Swot Analysis of "Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership" written by Luk Van Wassenhove, Aline Gatignon includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Humanitarian Fleet facing as an external strategic factors. Some of the topics covered in Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership case study are - Strategic Management Strategies, Social responsibility and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership casestudy better are - – there is increasing trade war between United States & China, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, increasing government debt because of Covid-19 spendings,
banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Humanitarian Fleet, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Humanitarian Fleet 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 Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership can be done for the following purposes –
1. Strategic planning using facts provided in Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership case study
2. Improving business portfolio management of Humanitarian Fleet
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 Humanitarian Fleet
Strengths Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Humanitarian Fleet in Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Humanitarian Fleet in the sector have low bargaining power. Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Humanitarian Fleet to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Humanitarian Fleet 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.
Training and development
– Humanitarian Fleet has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership 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.
Successful track record of launching new products
– Humanitarian Fleet has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Humanitarian Fleet 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.
Cross disciplinary teams
– Horizontal connected teams at the Humanitarian Fleet 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.
Sustainable margins compare to other players in Leadership & Managing People industry
– Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership firm has clearly differentiated products in the market place. This has enabled Humanitarian Fleet to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Humanitarian Fleet to invest into research and development (R&D) and innovation.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Humanitarian Fleet digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Humanitarian Fleet 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.
Innovation driven organization
– Humanitarian Fleet is one of the most innovative firm in sector. Manager in Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Humanitarian Fleet has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Humanitarian Fleet to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Humanitarian Fleet is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Humanitarian Fleet 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 Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to lead change in Leadership & Managing People field
– Humanitarian Fleet 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 Humanitarian Fleet in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership 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 Humanitarian Fleet has relatively successful track record of launching new products.
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 Humanitarian Fleet supply chain. Even after few cautionary changes mentioned in the HBR case study - Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Humanitarian Fleet vulnerable to further global disruptions in South East Asia.
High operating costs
– Compare to the competitors, firm in the HBR case study Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership 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 Humanitarian Fleet 's lucrative customers.
High cash cycle compare to competitors
Humanitarian Fleet 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.
Capital Spending Reduction
– Even during the low interest decade, Humanitarian Fleet 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Humanitarian Fleet is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership 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 Humanitarian Fleet products
– To increase the profitability and margins on the products, Humanitarian Fleet needs to provide more differentiated products than what it is currently offering in the marketplace.
High bargaining power of channel partners
– Because of the regulatory requirements, Luk Van Wassenhove, Aline Gatignon suggests that, Humanitarian Fleet 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.
Products dominated business model
– Even though Humanitarian Fleet 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 - Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership 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 Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership can leverage the sales team experience to cultivate customer relationships as Humanitarian Fleet is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Humanitarian Fleet 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.
Opportunities Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership | 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 Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Humanitarian Fleet is facing challenges because of the dominance of functional experts in the organization. Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership 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.
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. Humanitarian Fleet can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Humanitarian Fleet can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership 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, Humanitarian Fleet 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, Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, Humanitarian Fleet 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.
Building a culture of innovation
– managers at Humanitarian Fleet 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.
Loyalty marketing
– Humanitarian Fleet has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Better consumer reach
– The expansion of the 5G network will help Humanitarian Fleet to increase its market reach. Humanitarian Fleet 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Humanitarian Fleet 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 Humanitarian Fleet to hire the very best people irrespective of their geographical location.
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. Humanitarian Fleet 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. Humanitarian Fleet 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.
Manufacturing automation
– Humanitarian Fleet 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.
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. Humanitarian Fleet can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Humanitarian Fleet in the consumer business. Now Humanitarian Fleet can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership are -
High dependence on third party suppliers
– Humanitarian Fleet 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.
Technology acceleration in Forth Industrial Revolution
– Humanitarian Fleet has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Humanitarian Fleet 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.
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. Humanitarian Fleet can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Humanitarian Fleet needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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.
Increasing wage structure of Humanitarian Fleet
– 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 Humanitarian Fleet.
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 Humanitarian Fleet in the Leadership & Managing People sector and impact the bottomline of the organization.
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 Humanitarian Fleet.
Consumer confidence and its impact on Humanitarian Fleet 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Humanitarian Fleet 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Humanitarian Fleet 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 Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Humanitarian Fleet with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Humanitarian Fleet 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. Humanitarian Fleet can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Weighted SWOT Analysis of Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership 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 Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership 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 Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership 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 Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership 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 Safety in Numbers: Reducing Road Risk with Danida's Multi-sector Partnership 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 Humanitarian Fleet needs to make to build a sustainable competitive advantage.