Case Study Description of NAUKRI: THREE RETENTION DILEMMAS
The Naukri case deals with the talent retention challenge that most Indian companies are facing. The case explores different personnel retention scenarios that the founder encounters and how best he handles them. The case discusses Entrepreneurial and Leadership challenges in fast growing companies in India. Learning objectives: Understanding employee retention, leadership and entrepreneurial challenges in India.
Swot Analysis of "NAUKRI: THREE RETENTION DILEMMAS" written by Anand Narasimhan, Aparna Dogra includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Retention Naukri facing as an external strategic factors. Some of the topics covered in NAUKRI: THREE RETENTION DILEMMAS case study are - Strategic Management Strategies, Leadership, Talent management, Technology and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the NAUKRI: THREE RETENTION DILEMMAS casestudy better are - – cloud computing is disrupting traditional business models, increasing energy prices, increasing transportation and logistics costs, technology disruption, increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic ,
banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, etc
Introduction to SWOT Analysis of NAUKRI: THREE RETENTION DILEMMAS
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in NAUKRI: THREE RETENTION DILEMMAS case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Retention Naukri, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Retention Naukri 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 NAUKRI: THREE RETENTION DILEMMAS can be done for the following purposes –
1. Strategic planning using facts provided in NAUKRI: THREE RETENTION DILEMMAS case study
2. Improving business portfolio management of Retention Naukri
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 Retention Naukri
Strengths NAUKRI: THREE RETENTION DILEMMAS | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Retention Naukri in NAUKRI: THREE RETENTION DILEMMAS Harvard Business Review case study are -
Ability to recruit top talent
– Retention Naukri is one of the leading recruiters in the industry. Managers in the NAUKRI: THREE RETENTION DILEMMAS are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Retention Naukri in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Retention Naukri 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
– Retention Naukri is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Retention Naukri is present in almost all the verticals within the industry. This has provided firm in NAUKRI: THREE RETENTION DILEMMAS 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.
Organizational Resilience of Retention Naukri
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Retention Naukri does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Retention Naukri has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Retention Naukri 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.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Retention Naukri digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Retention Naukri 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.
Ability to lead change in Leadership & Managing People field
– Retention Naukri 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 Retention Naukri in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Retention Naukri 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 NAUKRI: THREE RETENTION DILEMMAS - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Leadership & Managing People industry
– NAUKRI: THREE RETENTION DILEMMAS firm has clearly differentiated products in the market place. This has enabled Retention Naukri to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Retention Naukri to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Retention Naukri in the sector have low bargaining power. NAUKRI: THREE RETENTION DILEMMAS has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Retention Naukri to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses NAUKRI: THREE RETENTION DILEMMAS | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of NAUKRI: THREE RETENTION DILEMMAS are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study NAUKRI: THREE RETENTION DILEMMAS, it seems that the employees of Retention Naukri 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.
Need for greater diversity
– Retention Naukri 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.
Increasing silos among functional specialists
– The organizational structure of Retention Naukri is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Retention Naukri needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Retention Naukri to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study NAUKRI: THREE RETENTION DILEMMAS, is just above the industry average. Retention Naukri 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 cash cycle compare to competitors
Retention Naukri 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Anand Narasimhan, Aparna Dogra suggests that, Retention Naukri is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
High operating costs
– Compare to the competitors, firm in the HBR case study NAUKRI: THREE RETENTION DILEMMAS 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 Retention Naukri 's lucrative customers.
Products dominated business model
– Even though Retention Naukri 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 - NAUKRI: THREE RETENTION DILEMMAS should strive to include more intangible value offerings along with its core products and services.
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 Retention Naukri supply chain. Even after few cautionary changes mentioned in the HBR case study - NAUKRI: THREE RETENTION DILEMMAS, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Retention Naukri vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Retention Naukri 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. Retention Naukri 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study NAUKRI: THREE RETENTION DILEMMAS, in the dynamic environment Retention Naukri has struggled to respond to the nimble upstart competition. Retention Naukri has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities NAUKRI: THREE RETENTION DILEMMAS | 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 NAUKRI: THREE RETENTION DILEMMAS are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Retention Naukri 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 Retention Naukri to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Retention Naukri 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.
Creating value in data economy
– The success of analytics program of Retention Naukri has opened avenues for new revenue streams for the organization in the industry. This can help Retention Naukri to build a more holistic ecosystem as suggested in the NAUKRI: THREE RETENTION DILEMMAS case study. Retention Naukri can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Retention Naukri 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. Retention Naukri 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.
Buying journey improvements
– Retention Naukri can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. NAUKRI: THREE RETENTION DILEMMAS 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.
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 Retention Naukri in the consumer business. Now Retention Naukri can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Retention Naukri 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, NAUKRI: THREE RETENTION DILEMMAS, 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. Retention Naukri can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Retention Naukri 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, Retention Naukri can use these opportunities to build new business models that can help the communities that Retention Naukri operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Loyalty marketing
– Retention Naukri 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.
Learning at scale
– Online learning technologies has now opened space for Retention Naukri 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.
Building a culture of innovation
– managers at Retention Naukri 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.
Threats NAUKRI: THREE RETENTION DILEMMAS External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study NAUKRI: THREE RETENTION DILEMMAS are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Retention Naukri with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Retention Naukri 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 NAUKRI: THREE RETENTION DILEMMAS .
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 Retention Naukri in the Leadership & Managing People sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Retention Naukri 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.
Technology acceleration in Forth Industrial Revolution
– Retention Naukri has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Retention Naukri 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
– Retention Naukri 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. Retention Naukri can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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.
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. Retention Naukri can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Retention Naukri business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Retention Naukri 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.
Shortening product life cycle
– it is one of the major threat that Retention Naukri is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Retention Naukri 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 NAUKRI: THREE RETENTION DILEMMAS, Retention Naukri 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 .
Weighted SWOT Analysis of NAUKRI: THREE RETENTION DILEMMAS 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 NAUKRI: THREE RETENTION DILEMMAS 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 NAUKRI: THREE RETENTION DILEMMAS 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 NAUKRI: THREE RETENTION DILEMMAS 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 NAUKRI: THREE RETENTION DILEMMAS 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 Retention Naukri needs to make to build a sustainable competitive advantage.
