Towards the Africa We Want Reconstructing Governance Case Solution

The Harvard Business Review published a case study that primarily focuses on Towards the Africa We Want Reconstructing Governance. The following case solution has been designed to give the reader an overview about the business world along with a clear understanding of its growth dynamics. Recently, Towards the Africa We Want Reconstructing Governance has been subjected to strategic as well as managerial problems that require immediate attention so that they can be resolved to allow future growth, expansion, and competitive edge within the marketplace. This case study solution is being written to provide a strategic solution to Towards the Africa We Want Reconstructing Governance using various appropriate tools and frameworks. Harvard Business Review’s case studies involve a central problem that is faced by a particular company. The problem identified involves strategic and managerial implications for the company. Therefore, it is important for readers to critically identify the problem Towards the Africa We Want Reconstructing Governance faces. Moreover, it is also essential to highlight the key stakeholders that are impacted and influenced by the problem identified.

External Environmental Analysis

The external environment holds significant importance for Towards the Africa We Want Reconstructing Governance to ensure that the company is able to respond to all the changes in the macro-environment. This is because Towards the Africa We Want Reconstructing Governance cannot control the factors and thus can directly influence the company's operations (Indris & Primiana, 2015). The external environment of Towards the Africa We Want Reconstructing Governance will be assessed using PESTLE Analysis.

Political

• A stable political environment provides a favorable market growth trend for Towards the Africa We Want Reconstructing Governance.

• It is important for Towards the Africa We Want Reconstructing Governance to analyze the pressure groups, and social environment activists. The company can make close collaborations with these groups to achieve company goals (Wang, Wang, & Shi, 2022).

• High restrictions on trade and high levels of taxes can contribute to the complex business environment for Towards the Africa We Want Reconstructing Governance by impacting imports and exports.

Economic

• Towards the Africa We Want Reconstructing Governance can benefit from wide-range opportunities in business growth by operating in developing economies (Munro, 2017).

• High GDP can determine the long-term growth strategies of Towards the Africa We Want Reconstructing Governance, signaling the ability of consumers to spend on more products.

• Higher rates of interests can provide Towards the Africa We Want Reconstructing Governance with more investment opportunities.

• The flexibility in the labor market allows Towards the Africa We Want Reconstructing Governance to take advantage of higher workforce productivity.

Social

• The selection of appropriate demographic segments has allowed Towards the Africa We Want Reconstructing Governance to select the right segments of the market that have high growth potential.

• The research on gender roles has helped Towards the Africa We Want Reconstructing Governance to develop and align communication as well as marketing strategies accordingly.

• Towards the Africa We Want Reconstructing Governance has been successful in understanding the norms and cultures of different countries by developing local teams and partnerships (Hueske, Endrikat, & Guenther, 2015).

Technological

• The adoption of innovative marketing techniques that involves communication technologies has allowed Towards the Africa We Want Reconstructing Governance to collaborate successfully with consumers.

• The company has stayed ahead in the market, and can significantly increase its market share by placing its major focus on emerging technologies (Akpoviroro & Owotutu, 2018).

• Towards the Africa We Want Reconstructing Governance should maximize its profits by investing in disruptive technologies.

Environmental

• It is crucial for Towards the Africa We Want Reconstructing Governance to adopt effective waste management practices to reduce environmental pollution (J. K, W. J, & D., 2016).

• Towards the Africa We Want Reconstructing Governance should adopt eco-friendly products to establish better relationships with the stakeholders.

• Towards the Africa We Want Reconstructing Governance can take advantage of subsidies offered in renewable technologies to achieve the long-term goal of sustainability.

Legal

• Towards the Africa We Want Reconstructing Governance should follow proper laws concerning employee health and safety, and anti-discrimination laws to effectively develop HRM.

• Consumer protection laws are also important for Towards the Africa We Want Reconstructing Governance as it involves the consumer protection from fraudulent marketing (S. Samusenko, S. Plaskova, & A. Prodanova, 2020).

• Towards the Africa We Want Reconstructing Governance can gain a competitive advantage, and can position itself strongly in the market by protecting intellectual property laws.

Porter’s Five Forces Analysis

Threat of New Entrants

• It is difficult to achieve economies of scale in Towards the Africa We Want Reconstructing Governance’s industry, making it a weaker force for new entrants.

• There are high capital requirements in the industry. This makes it difficult for new businesses to set up their companies, and compete against Towards the Africa We Want Reconstructing Governance.

• The industry has a strong product differentiation, and heavy investment is needed for customer acquisition. Thus, Towards the Africa We Want Reconstructing Governance can focus on innovation to differentiate itself from its competitors (H. Th. Bruijl, 2018).

• There are strict legal requirements to join the industry in which Towards the Africa We Want Reconstructing Governance operates, making it difficult for new entrants to enter the market.

Bargaining Power of Suppliers

• The bargaining power of suppliers in the industry is weak.

• Towards the Africa We Want Reconstructing Governance operates in an industry with a higher number of suppliers. This means that suppliers do not have much control over their prices.

• Standardized products that have low switching costs are provided by suppliers allowing buyers like Towards the Africa We Want Reconstructing Governance to easily switch their suppliers (Fabbri & F.Klapper, 2016).

• Raw materials can be purchased at lower prices by Towards the Africa We Want Reconstructing Governance. The company can also switch suppliers for more reasonable pricing.

• Towards the Africa We Want Reconstructing Governance can benefit from a variety of suppliers as it can have multiple suppliers for its various geographical areas (Cho, Ke, & Han, 2019).

Bargaining Power of Buyers

• The bargaining power of buyers in the Towards the Africa We Want Reconstructing Governance industry is weak.

• There is a high product differentiation in the industry, making it difficult for buyers to switch to alternative firms.

• Towards the Africa We Want Reconstructing Governance can come with differentiated and innovative products to attract more buyers of the industry (Zhao, Zuo, & Wu, 2016).

• Buyers of this industry has low incomes. This means they prefer to purchase items at lower prices, making them more price sensitive. Organizations like Towards the Africa We Want Reconstructing Governance can offer lower prices to attract customers.

Threat of Substitute Products or Services

• There are few substitute products available in the industry in which Towards the Africa We Want Reconstructing Governance operates.

• Expensive substitutes are available in the industry of Towards the Africa We Want Reconstructing Governance, making it difficult for buyers to switch to those substitutes (Aithal, 2016).

Rivalry Among Existing Firms

• The rivalry among existing firms is moderate to weak.

• There are few competitors in the industry in which Towards the Africa We Want Reconstructing Governance operates.

• A large market share is enjoyed by fewer firms in the industry. This means that more competitive actions will be made to become leaders in the market (Seema, 2016).

• The industry in which Towards the Africa We Want Reconstructing Governance operates has highly differentiated products, making it difficult for companies to win each other customers.

• Towards the Africa We Want Reconstructing Governance can focus on making more differentiated products to gain a strong competitive edge in the market (Zhao, Zuo, & Wu, 2016).

Internal Environmental Analysis

Towards the Africa We Want Reconstructing Governance can use internal environmental analysis to identify and evaluate the competitive positioning of a company in the business environment. This involves conducting a SWOT Analysis that can help Towards the Africa We Want Reconstructing Governance to identify the company’s internal strengths, weaknesses, opportunities, and threats (Halmaghi, Iancue, & Băcilă, 2017).

SWOT Analysis

Strengths

• Towards the Africa We Want Reconstructing Governance has a strong distribution network that has allowed it to make its products available to large customers within the given timeframe.

• A strong presence on social media platforms has allowed Towards the Africa We Want Reconstructing Governance to have a high level of customer engagement (Rizaldi, 2015).

• Towards the Africa We Want Reconstructing Governance has been successful in building a large product portfolio, so unique and distinctive products can be offered to consumers.

• Towards the Africa We Want Reconstructing Governance has a strong brand image in the market.

• A low-cost structure of Towards the Africa We Want Reconstructing Governance has allowed it to manufacture products at lower costs, so they become affordable for consumers to purchase.

• The financial position of Towards the Africa We Want Reconstructing Governance is strong as the company has generated higher profits over the past years (Phadermrod, M.Crowder, & B.Wills, 2019).

• Towards the Africa We Want Reconstructing Governance has invested in the training and development of its employees to keep them motivates, leading to higher efficiency and productivity.

Weaknesses

• The expenditure of Towards the Africa We Want Reconstructing Governance on its research and development is comparatively less to other competitors of the market.

• Towards the Africa We Want Reconstructing Governance uses a centralized decision-making process that takes time and reduces operational efficiency (Ahmadi, Dileepan, & K. Wheatley, 2016).

• There are high rental costs because Towards the Africa We Want Reconstructing Governance operates on more of the rental properties rather than purchasing them.

• There is no workforce diversification in Towards the Africa We Want Reconstructing Governance. This makes it difficult for the employees to adjust with the different workers who belong to different backgrounds.

Opportunities

• Since the online shopping has increased significantly, Towards the Africa We Want Reconstructing Governance can take it as an opportunity to expand its online presence.

• Towards the Africa We Want Reconstructing Governance can make use of social media platforms to market its products, with more customers interactions.

• Due to more technological developments, Towards the Africa We Want Reconstructing Governance can make its operations more automated so that overall company costs can be reduced (Ahmadi, Dileepan, & K. Wheatley, 2016).

• Globalization provides an opportunity to Towards the Africa We Want Reconstructing Governance to expand its operations in multiple countries.

• Towards the Africa We Want Reconstructing Governance can enter in a niche market and sell distinctive products to gain a competitive advantage.

• The increase in the demand of environmentally friendly goods, Towards the Africa We Want Reconstructing Governance, can place its major focus on making such products (E.Quezada, A.Reinao, & I.Palominos, 2019).

Threats

• In recent times, there has been an increase in the bargaining power of suppliers, making it difficult for Towards the Africa We Want Reconstructing Governance to buy raw materials at lower costs.

• Numerous players are entering the industry, posing a major threat to Towards the Africa We Want Reconstructing Governance.

• There has been constant pressure on Towards the Africa We Want Reconstructing Governance to conduct frequent research to understand the changing customer tastes and preferences (Kolbina, 2015).

• Technological advancements require workforce training. This adds to the costs of Towards the Africa We Want Reconstructing Governance.

VRIO Analysis

Towards the Africa We Want Reconstructing Governance uses VRIO Analysis to assess and evaluate the company resources to determine the competitiveness, and strategic advantage.

Valuable

• Towards the Africa We Want Reconstructing Governance has a strong brand image and engages in corporate social responsibility.

• Towards the Africa We Want Reconstructing Governance has a high brand recognition because of the quality of products it offers to its customers (Ariyani & Daryanto, 2018).

• The distribution system of Towards the Africa We Want Reconstructing Governance is valued all round the world. The company has been able to successfully establish strong relationships with its suppliers.

• Towards the Africa We Want Reconstructing Governance focuses on continuous innovation in its business. The company has expanded this innovation in its multiple functional areas.

• There are potential growth opportunities in the market, and Towards the Africa We Want Reconstructing Governance has been able to penetrate the market through its ability to raise large funds.

Rare

• Towards the Africa We Want Reconstructing Governance operates globally. This global presence has allowed the company to increase its customer base (Miethlich & G. Oldenburg, 2019).

• Towards the Africa We Want Reconstructing Governance has an organizational culture that promotes more teamwork, innovation, and creativity among its employees, that leads to a competitive advantage.

• Since Towards the Africa We Want Reconstructing Governance has a global presence, it allows the company to easily adapt to different cultures, norms and values.

• The risk-taking ability of Towards the Africa We Want Reconstructing Governance is strong. This provides more opportunities to the company to penetrate different markets.

Inimitable

• The inimitable resource for Towards the Africa We Want Reconstructing Governance is its high-quality products. These products have allowed consumers to make repeat purchases.

• Towards the Africa We Want Reconstructing Governance operates through multiple locations of stores in different companies, allowing easy access to products.

• Strong marketing communications have been used by Towards the Africa We Want Reconstructing Governance to attract more customers.

• Towards the Africa We Want Reconstructing Governance has been using integrated technology that has allowed it to offer competitive pricing to its customers (Ariwibowo, Saputro, & Haryanto, 2021).

• Towards the Africa We Want Reconstructing Governance maintains an excellent customer service that has enabled it to have a high brand engagement.

Organization

• Strong financial position has allowed Towards the Africa We Want Reconstructing Governance to explore more product development opportunities.

• Towards the Africa We Want Reconstructing Governance is successfully maintaining the efficiency and effectiveness of its business operations with the help of more integrated and advanced technology.

• Employees are given both in-house and off-the-job training opportunities by Towards the Africa We Want Reconstructing Governance that allow more skills development (Adnan, Abdulhamid, & Sohail, 2018).

• The strong value chain and distribution network has enabled Towards the Africa We Want Reconstructing Governance to increase its revenue through the sale of its products.

Marketing Mix

Marketing Mix is needed by Towards the Africa We Want Reconstructing Governance to formulate effective strategies to achieve the company objectives.

Product

• Towards the Africa We Want Reconstructing Governance has five product categories. Each of these categories has a product line that involves more variety of products (Išoraitė, 2016).

• Highly differentiated products are offered by Towards the Africa We Want Reconstructing Governance to its customers. These distinctive products are not easily available at competitors.

• The products of Towards the Africa We Want Reconstructing Governance are of higher quality, and thus, customers pay more prices for these products.

• Towards the Africa We Want Reconstructing Governance designs products with traditional designs giving customers more product variety.

• Towards the Africa We Want Reconstructing Governance offers multiple sizes for its every product to make it easy for its customers to select the right product.

• Warranty and same-day delivery option if also provided by Towards the Africa We Want Reconstructing Governance to its customers.

Price

• Towards the Africa We Want Reconstructing Governance follows a competitive pricing strategy.

• To attract more customers, bundle pricing has also been used by the company.

• Little higher prices are charged for products that are sold online because of the delivery costs (Thabit & Raewf, 2018).

• Optional product pricing strategy is also adopted by Towards the Africa We Want Reconstructing Governance for some of its products, such as a base product is offered for a certain price, and there are separate prices for its accessories.

• Regular promotional prices are also offered by Towards the Africa We Want Reconstructing Governance to its customers.

Place

• Towards the Africa We Want Reconstructing Governance uses two channels for its product distribution. This includes online selling and through own stores.

• There are more than multiple stores owned by Towards the Africa We Want Reconstructing Governance globally. This ensures easy product availability to customers (Pogorelova, Yakhneeva, & Agafonova, 2016).

• Towards the Africa We Want Reconstructing Governance has partnered with delivery service companies to distribute its products effectively to consumers.

• Towards the Africa We Want Reconstructing Governance has also adopted an omni-channel distribution system.

Promotion

• Towards the Africa We Want Reconstructing Governance uses a traditional promotional strategy that involves TV advertisements (Fan, Y.K.Lau, & Zhao, 2015).

• Social media advertisements are also adopted by Towards the Africa We Want Reconstructing Governance to increase brand awareness.

• Towards the Africa We Want Reconstructing Governance takes part in various events and exhibitions as a way of promoting its products.

• Large sales force is used to provide the customers with a more personal experience.

• Towards the Africa We Want Reconstructing Governance also makes use of influencer marketing to increase the demand for its products.

• Regular content and deals are posted on the social media pages of Towards the Africa We Want Reconstructing Governance to attract and retain customers.

Value Chain Analysis

Towards the Africa We Want Reconstructing Governance can use Value Chain Analysis to identify and assess inter-relationships as well as interdependencies.

Primary Activities

• Towards the Africa We Want Reconstructing Governance’s primary activities involves the production and selling of products to the final consumers (Mintz, J.Gilbride, & Lenk, 2021).

• Towards the Africa We Want Reconstructing Governance has a strong relationship with the suppliers. This ensures that the product is received, stored, and distributed in a timely manner.

• Operational activities of Towards the Africa We Want Reconstructing Governance are effectively aligned.

• For inbound logistics, after the arrival of raw material, the company processes it to manufacture the final product (Hasan, Nekmahmud, & Yajuan, 2019).

• In terms of outbound logistics, Towards the Africa We Want Reconstructing Governance has been able to set up optimal costs as well as efficient delivery processes to deliver the product on time.

• Towards the Africa We Want Reconstructing Governance invests in its sales and marketing activities to build relationships with customers.

• Marketing funnel approach is used by Towards the Africa We Want Reconstructing Governance to effectively devise and build sales and marketing activities.

• Towards the Africa We Want Reconstructing Governance offers both pre-sale and post-sales services to its customers.

Secondary Activities

• Towards the Africa We Want Reconstructing Governance has an effective infrastructure that has allowed the company to successfully optimize its value chain.

• The competitive pressure in terms of employee skill development, motivation, and commitment is reduced as Towards the Africa We Want Reconstructing Governance has developed a strong HRM (Linkov, Carluccio, Pritchard, & Bhreasail, 2020).

• Towards the Africa We Want Reconstructing Governance uses a cost minimization approach to reduce its costs by analyzing the costs associated with training and hiring the employees.

• Towards the Africa We Want Reconstructing Governance has been using integrated technology in its value chain activities. This includes technological customer support, research and data analytics concerning product design, and automated software.

• The procurement activities of Towards the Africa We Want Reconstructing Governance are effectively optimized with its inbound, outbound, and operational activities (Maheswari, Yudoko, & Adhiutama, 2019).

Market Penetration Strategies

• Towards the Africa We Want Reconstructing Governance can increase the capacity of its production so it can reach more of the customers in its existing market.

• Towards the Africa We Want Reconstructing Governance can focus on controlling the overhead costs so that it can offer competitive pricing that can attract customers of the market (Dawes, 2018).

• Investments can be made by Towards the Africa We Want Reconstructing Governance in marketing and sales activities to increase the chances of successful market penetration.

• Towards the Africa We Want Reconstructing Governance can design and develop a content that increases customer engagement within a particular marketplace.

• Towards the Africa We Want Reconstructing Governance can assess and identify more enhanced distribution networks (Radpour, Mondal, & Kumar, 2017).

• Improved distribution systems and supply chains can improve the product accessibility for the customers, making it easier for Towards the Africa We Want Reconstructing Governance to penetrate the market.

• Towards the Africa We Want Reconstructing Governance can adopt price cuts in its products to compete in the market. This will give a company a competitive edge over its competitors.

• Towards the Africa We Want Reconstructing Governance can plan strategies where it can focus on acquiring the leading players of the market. Such acquisitions will give the company an opportunity to reach more customer segments.

• Strategic partnerships and joint ventures agreements can be signed by Towards the Africa We Want Reconstructing Governance to mitigate the risk factors, and to gain customer groups of the market.

• Towards the Africa We Want Reconstructing Governance can come up with new and innovative features in its already existing product for the market (Daouda, Barth, & T. M. Ingenbleek, 2019).

Market Development Strategies

• It is important for Towards the Africa We Want Reconstructing Governance to invest in the research and development department so potential markets can be identified (Hilman, Bohari, & Abdullah, 2018).

• Regional expansion strategy can be used by Towards the Africa We Want Reconstructing Governance for growth purposes. This will also take into consideration the cultural differences.

• Towards the Africa We Want Reconstructing Governance should also consider to expand its business operations in the international market. This will allow access to a larger customer base.

• New customer groups and segments should be explored by Towards the Africa We Want Reconstructing Governance.

• Towards the Africa We Want Reconstructing Governance should also invest in brand-building activities as it will give an opportunity to reach more potential customers (C. Koks & M. Kilika, 2016).

• Towards the Africa We Want Reconstructing Governance should consider the market education in terms of its product. The company can significantly increase its sales by giving product awareness to new segments.

Product Development Strategies

• Towards the Africa We Want Reconstructing Governance can come up with new improvements and modifications in the existing products to attract the market.

• Towards the Africa We Want Reconstructing Governance should undergo the NPD process, so the company is able to assess and identify new points for its customers.

• Regular investments in the research and development will help Towards the Africa We Want Reconstructing Governance to develop something new and innovative that can give a competitive advantage (Kalogiannidis & Mavratzas, 2020).

• Towards the Africa We Want Reconstructing Governance can develop new products by getting into more strategic partnerships.

Diversification Strategies

• Towards the Africa We Want Reconstructing Governance can adopt vertical diversification to develop business. This can be done by adding more products to the existing portfolio (Kalogiannidis & Mavratzas, 2020).

• Horizontal integration can also be adopted by Towards the Africa We Want Reconstructing Governance, where the company can enter into a completely new product development phase that does not exist in the current product line.

• Towards the Africa We Want Reconstructing Governance can also consider to conglomerate by starting a different business.

Conclusion

Based on all the models and frameworks discussed above, it is concluded that Towards the Africa We Want Reconstructing Governance should focus on widening the existing product portfolio. Moreover, the psychological pricing strategy can be adopted. Towards the Africa We Want Reconstructing Governance should also maintain close relationships with its suppliers to benefit from lower prices. Similarly, Towards the Africa We Want Reconstructing Governance should develop more integrated outbound logistics for its perishable items. It is also important to continue producing quality and innovative products, so Towards the Africa We Want Reconstructing Governance is less affected by the new emerging competition in the industry.

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