Based on various researches at Oak Spring University , Goenka Diamond Jewels Ltd is operating in a macro-environment that has been destablized by – increasing energy prices, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, there is increasing trade war between United States & China, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies,
technology disruption, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Goenka Diamond Jewels Ltd
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Goenka Diamond Jewels Ltd can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Goenka Diamond Jewels Ltd, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Goenka Diamond Jewels Ltd 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 Goenka Diamond Jewels Ltd can be done for the following purposes –
1. Strategic planning of Goenka Diamond Jewels Ltd
2. Improving business portfolio management of Goenka Diamond Jewels Ltd
3. Assessing feasibility of the new initiative in India
4. Making a Jewelry & Silverware sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Goenka Diamond Jewels Ltd
Strengths of Goenka Diamond Jewels Ltd | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Goenka Diamond Jewels Ltd are -
Organizational Resilience of Goenka Diamond Jewels Ltd
– The covid-19 pandemic has put organizational resilience at the centre of everthing Goenka Diamond Jewels Ltd does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Goenka Diamond Jewels Ltd 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 Goenka Diamond Jewels Ltd is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders at Goenka Diamond Jewels Ltd emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Goenka Diamond Jewels Ltd is present in almost all the verticals within the Jewelry & Silverware industry. This has provided Goenka Diamond Jewels Ltd 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.
Superior customer experience
– The customer experience strategy of Goenka Diamond Jewels Ltd in Jewelry & Silverware industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Goenka Diamond Jewels Ltd is one of the most innovative firm in Jewelry & Silverware sector.
Sustainable margins compare to other players in Jewelry & Silverware industry
– Goenka Diamond Jewels Ltd has clearly differentiated products in the market place. This has enabled Goenka Diamond Jewels Ltd to fetch slight price premium compare to the competitors in the Jewelry & Silverware industry. The sustainable margins have also helped Goenka Diamond Jewels Ltd to invest into research and development (R&D) and innovation.
Strong track record of project management in the Jewelry & Silverware industry
– Goenka Diamond Jewels Ltd is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Goenka Diamond Jewels Ltd 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.
Effective Research and Development (R&D)
– Goenka Diamond Jewels Ltd has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Goenka Diamond Jewels Ltd staying ahead in the Jewelry & Silverware industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Goenka Diamond Jewels Ltd in the Consumer Cyclical sector have low bargaining power. Goenka Diamond Jewels Ltd has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Goenka Diamond Jewels Ltd to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Goenka Diamond Jewels Ltd has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Goenka Diamond Jewels Ltd 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.
High switching costs
– The high switching costs that Goenka Diamond Jewels Ltd 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.
Weaknesses of Goenka Diamond Jewels Ltd | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Goenka Diamond Jewels Ltd are -
Skills based hiring in Jewelry & Silverware industry
– The stress on hiring functional specialists at Goenka Diamond Jewels Ltd 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.
Capital Spending Reduction
– Even during the low interest decade, Goenka Diamond Jewels Ltd 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 Jewelry & Silverware industry using digital technology.
Compensation and incentives
– The revenue per employee of Goenka Diamond Jewels Ltd is just above the Jewelry & Silverware industry average. It 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.
No frontier risks strategy
– From the 10K / annual statement of Goenka Diamond Jewels Ltd, it seems that company is thinking out the frontier risks that can impact Jewelry & Silverware industry. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Goenka Diamond Jewels Ltd is slow explore the new channels of communication. These new channels of communication can help Goenka Diamond Jewels Ltd to provide better information regarding Jewelry & Silverware products and services. It can also build an online community to further reach out to potential customers.
Employees’ less understanding of Goenka Diamond Jewels Ltd strategy
– From the outside it seems that the employees of Goenka Diamond Jewels Ltd 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.
Low market penetration in new markets
– Outside its home market of India, Goenka Diamond Jewels Ltd needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– From the outside it seems that Goenka Diamond Jewels Ltd needs to have more collaboration between its sales team and marketing team. Sales professionals in the Jewelry & Silverware industry have deep experience in developing customer relationships. Marketing department at Goenka Diamond Jewels Ltd can leverage the sales team experience to cultivate customer relationships as Goenka Diamond Jewels Ltd is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative at Goenka Diamond Jewels Ltd, in the dynamic environment of Jewelry & Silverware industry it has struggled to respond to the nimble upstart competition. Goenka Diamond Jewels Ltd has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Goenka Diamond Jewels Ltd is dominated by functional specialists. It is not different from other players in the Jewelry & Silverware industry, but Goenka Diamond Jewels Ltd needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Goenka Diamond Jewels Ltd to focus more on services in the Jewelry & Silverware industry rather than just following the product oriented approach.
Products dominated business model
– Even though Goenka Diamond Jewels Ltd has some of the most successful models in the Jewelry & Silverware industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. Goenka Diamond Jewels Ltd should strive to include more intangible value offerings along with its core products and services.
Goenka Diamond Jewels Ltd Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities of Goenka Diamond Jewels Ltd are -
Better consumer reach
– The expansion of the 5G network will help Goenka Diamond Jewels Ltd to increase its market reach. Goenka Diamond Jewels Ltd 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.
Use of Bitcoin and other crypto currencies for transactions in Jewelry & Silverware industry
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Goenka Diamond Jewels Ltd in the Jewelry & Silverware industry. Now Goenka Diamond Jewels Ltd can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Goenka Diamond Jewels Ltd 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.
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 Goenka Diamond Jewels Ltd to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Low interest rates
– Even though inflation is raising its head in most developed economies, Goenka Diamond Jewels Ltd 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Goenka Diamond Jewels Ltd in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Jewelry & Silverware industry, and it will provide faster access to the consumers.
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. Goenka Diamond Jewels Ltd can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Goenka Diamond Jewels Ltd 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 Goenka Diamond Jewels Ltd 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 Jewelry & Silverware industry, but it has also influenced the consumer preferences. Goenka Diamond Jewels Ltd can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Goenka Diamond Jewels Ltd can improve the customer journey of consumers in the Jewelry & Silverware industry by using analytics and artificial intelligence. It 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.
Developing new processes and practices
– Goenka Diamond Jewels Ltd can develop new processes and procedures in Jewelry & Silverware 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.
Creating value in data economy
– The success of analytics program of Goenka Diamond Jewels Ltd has opened avenues for new revenue streams for the organization in Jewelry & Silverware industry. This can help Goenka Diamond Jewels Ltd to build a more holistic ecosystem for Goenka Diamond Jewels Ltd products in the Jewelry & Silverware industry by providing – data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Goenka Diamond Jewels Ltd is facing challenges because of the dominance of functional experts in the organization. Goenka Diamond Jewels Ltd can utilize new technology in the field of Jewelry & Silverware industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Threats Goenka Diamond Jewels Ltd External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats of Goenka Diamond Jewels Ltd are -
Increasing wage structure of Goenka Diamond Jewels Ltd
– 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 Goenka Diamond Jewels Ltd.
Shortening product life cycle
– it is one of the major threat that Goenka Diamond Jewels Ltd is facing in Jewelry & Silverware sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Goenka Diamond Jewels Ltd needs to understand the core reasons impacting the Jewelry & Silverware industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Goenka Diamond Jewels Ltd 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry to Jewelry & Silverware industry are lowering. It can presents Goenka Diamond Jewels Ltd with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Jewelry & Silverware sector.
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. Goenka Diamond Jewels Ltd 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, Goenka Diamond Jewels Ltd may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Jewelry & Silverware sector.
Technology acceleration in Forth Industrial Revolution
– Goenka Diamond Jewels Ltd has witnessed rapid integration of technology during Covid-19 in the Jewelry & Silverware industry. As one of the leading players in the industry, Goenka Diamond Jewels Ltd needs to keep up with the evolution of technology in the Jewelry & Silverware 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.
Consumer confidence and its impact on Goenka Diamond Jewels Ltd 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 Jewelry & Silverware industry and other sectors.
Stagnating economy with rate increase
– Goenka Diamond Jewels Ltd 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 Jewelry & Silverware industry.
Regulatory challenges
– Goenka Diamond Jewels Ltd 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 Jewelry & Silverware industry regulations.
Environmental challenges
– Goenka Diamond Jewels Ltd 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. Goenka Diamond Jewels Ltd can take advantage of this fund but it will also bring new competitors in the Jewelry & Silverware industry.
Easy access to finance
– Easy access to finance in Jewelry & Silverware industry will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Goenka Diamond Jewels Ltd can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Goenka Diamond Jewels Ltd Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Goenka Diamond Jewels Ltd 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 Goenka Diamond Jewels Ltd 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 Goenka Diamond Jewels Ltd 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 Goenka Diamond Jewels Ltd 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 Goenka Diamond Jewels Ltd needs to make to build a sustainable competitive advantage.