Choosing a Viable Growth Tactic: InVenture Changes Strategy Case Study

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What Is the Central Issue(s) That InVenture Is Facing in This Case?

Changing strategies may be a decisive moment for companies, regardless of whether they provide a unique service or an already established and popular good. Shivani Siroya, the CEO of InVenture, has both ideas and fears per the company’s future goals as it expands to integrate itself into Kenyan markets after its previous successes in India (Mandell et al. 10). While the Indian market has proven to be reliable, with a well-organized team and thoroughly studied consumer trends, the Kenyan one promises a growth burst if InVenture can adapt to the nation’s heightened technological savviness (Mandell et al. 8).

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Thus, as Siroya outlined herself, InVenture is burdened with choosing a viable growth tactic; either splitting resources between their two markets or reorienting themselves to focus primarily on “loan products for customers in Kenya” (Mandell et al. 2). Therefore, adapting to the two countries’ market differences necessitates differentiating between the services provided by a single company, and InVenture’s central concern is making an educated decision regarding their internal allocation of resources.

What Were Shivani’s Goals in Creating and Growing InVenture?

InVenture’s mission may be outlined as providing impoverished people with the means to better their economic standing by providing them with the means of demonstrating their financial integrity. Doing so helps uplift a particular underprivileged population stratum by empowering them with economic freedom, facilitated by their procurement of bigger loans than previously possible, for example, $650-$6000 instead of merely $150 (Mandell et al. 6).

Siroya’s interest in growing InVenture was to “serve the billions of people in the world who lacked formal financial access,” which necessitated proving the credibility of her business’s data collection methods to leading financial institutions (Mandell et al. 9). Thus, Siroya’s goal requires InVenture to find access to new sources of capital, as well as secure itself as a reliable provider of financial data and a self-sufficient loan distributor (Haigh et al. 72; Mandell et al. 3). Therefore, the motivation behind both InVenture’s creation and growth can be identified as creating a renowned data-collecting company that can elicit a positive change in destitute regions.

What Constraints Is She Facing in Addressing the Central Issue(s) Noted in Question 1 Above?

An omnipresent constraint is the limited nature of all resources and the fact that their reallocation may create an uneven distribution of capital. The lack of a trusted local team and “professional loan origination services” constitute the central problems within the Kenyan project (Mandell et al. 10-11).

Furthermore, the populace’s technological limitations and government-imposed controls on businesses and loan services constrict InVenture’s India-based growth, severely curbing the possibility of introducing such services there (Mandell et al. 10). Splitting attention between the two markets may overwork Siroya’s team, who will also have to work in an unfamiliar environment, and focusing only on the Kenyan market would void their promising progress in India. Moreover, the necessity to prove her company’s integrity to leading financial institutions disallows Siroya from focusing solely on the Indian market (Mandell et al. 9).

Thus, InVenture’s primary constraints may be identified as limited human resources, the two markets’ technological disparity, the hindering restrictions imposed by the Indian government, and the short-term benefits and implications of the Kenyan project.

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What Are the Company’s Alternatives in Going Forward?

The alternatives available to InVenture may all be identified as retaining India as the company’s long-term project with the most potential. As a first option, InVenture can continue short-term and low-prospect projects in markets, such as Kenya, aggregating experience to secure their future position as a leading business in India (Mandell et al. 12). Conversely, Siroya can risk reallocating all efforts back to the Indian market and hope to withstand the persevering growth barriers that will prevent the company from achieving their full potential (Mandell et al. 11).

A further spin-off from the latter option could be diversifying within India, for example, by apperceiving an additional step that may exist between providing methods of financial tracking and loans. Nonetheless, either of these alternatives is viable for InVenture’s growth because they will stimulate an inflow of capital, help amass a bigger, more experienced team, and advance the company’s mission (Haigh et al. 72; Mandell et al. 1). Therefore, InVenture retains sufficient flexibility to support both diversification and concentration.

What Is Your Recommended Course of Action, and Why Did You Make This Recommendation?

Returning to India would be the best development for InVenture after securing its position in Kenya. The retained diversification experience can provide the company with a credible name among leading financial institutions, and returning to the Indian market as soon as possible should prevent Siroya’s short-staffed team from burning out (Mandell et al. 9). Thus, if the stepping-stone goal to “prove that the algorithm [InVenture] had developed was distinctive” is fruitful, then revamping her team towards a more gratifying project may be the most favorable maneuver for Siroya (Mandell et al. 11). Moreover, doing so would be in line with the CEOs values and InVenture’s mission (Haigh et al. 67).

The outlined constraints further motivate this recommendation, since continuous growth may overtax InVenture’s resources, resulting in a loss of profit despite numerous small-scale market ventures. Therefore, reallocating back to India may be the best strategy for Siroya per the newly-forged positive recognition of InVenture’s reputation following the Kenyan project that demonstrated the company’s ability to pursue its central mission effectively.

Works Cited

Haigh, Nardia, et al. “Hybrid Organizations as Shape-Shifters: Altering Legal Structure for Strategic Gain.” California Management Review, vol. 57, no. 3, 2015, pp. 59-82. Web.

Mandell, Abby Fifer, et al. InVenture: Building Credit Scoring Tools for “the Base of the Pyramid.” Lloyd Greif Center for Entrepreneurial Studies, 2015.

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IvyPanda. 2022. "Choosing a Viable Growth Tactic: InVenture Changes Strategy." June 25, 2022. https://ivypanda.com/essays/inventure-changes-strategy-case-study/.

1. IvyPanda. "Choosing a Viable Growth Tactic: InVenture Changes Strategy." June 25, 2022. https://ivypanda.com/essays/inventure-changes-strategy-case-study/.


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IvyPanda. "Choosing a Viable Growth Tactic: InVenture Changes Strategy." June 25, 2022. https://ivypanda.com/essays/inventure-changes-strategy-case-study/.

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