KSE IOM Consulting: Gnizdo
Introduction:
Gnizdo, a small enterprise specializing in linen clothing, sought the guidance of Kyiv School of Economics (KSE) Consulting to navigate the challenges they faced due to the war in Ukraine. KSE Consulting experts, renowned for their expertise in growing and managing businesses, took on the initiative to assist small enterprises in need. Read about other cases of this initiative described here.
Consultant and Project
Maksym Antonenko, an experienced MBA consultant who specializes in risk management, financial planning, innovation, and international trade, oversaw the Gnizdo case. Over the course of three 2-hour long consultations, spanning from the end of March to the end of May, Maksym focused on formulating a strategy that would set Gnizdo apart in the competitive market of linen clothing.
Strategy Development
The main consulting objective was to establish a clear direction for growth and success by aligning Gnizdo’s business activities and goals.
To achieve this, Maksym employed various business tools and concepts to guide the strategy development process. The Business Model Canvas, a popular strategic management template, provided a holistic view of Gnizdo's business model, highlighting key elements such as value proposition, customer segments, revenue streams, and channels. This tool helped Gnizdo identify the essential components of their business and understand how they could create value for their customers.
Maksym utilized a few other business tools and concepts, to guide Gnizdo along the strategy development process. Market analysis, brand positioning, and differentiation were emphasized to help Gnizdo identify unique qualities that customers were willing to pay a premium for. Effective communication strategies, both online and offline, were discussed to build strong customer relationships. Additionally, analyzing competitors and exploring potential partnerships were encouraged to ensure competitiveness and discover new market opportunities.
The Value Chain analysis further aided in identifying areas of competitive advantage. By analyzing each stage of the value creation process, from sourcing materials to delivering the final product to customers, Gnizdo could optimize their operations and enhance their value proposition. This analysis also helped them identify potential areas for improvement and cost reduction, thus increasing their profitability.
One of the critical aspects of the strategy development process was competitive positioning. Maksym emphasized the importance of thoroughly understanding the market and competitors. Through market analysis, Gnizdo gained valuable insights into customer preferences, market trends, and competitive landscape. This information allowed them to differentiate themselves from competitors and identify unique selling points that would resonate with their target audience.
Additionally, Maksym introduced Gnizdo to the VRIO analysis framework. VRIO stands for valuable, rare, inimitable, and organized resources, which are key determinants of sustained competitive advantage. By conducting a VRIO analysis, Gnizdo could assess their resources and capabilities and identify areas where they had a competitive edge. This analysis helped them leverage their strengths and allocate resources efficiently, further strengthening their position in the market.
Benefits of Consulting
The consulting approach adopted by KSE aimed at coaching the business owner, enabling them to actively participate in the analysis and decision-making processes. This collaborative environment empowered the owner to research customers, develop customer value propositions, define resources, and describe channels. The structured approach towards analysis and strategy development resulted in a clear roadmap for creating value propositions and brand stories across all channels, generating interest and engagement with the brand.
Project Plan
The project plan encompassed key elements such as business idea development, competitive positioning, VRIO analysis, SWOT analysis, target market analysis, pricing strategies, distribution channels, customer acquisition funnel, and business financing. By incorporating these elements into the project plan, Maksym provided Gnizdo with a comprehensive roadmap to guide their business development and growth strategies.
Success and Legacy
Thanks to the invaluable consultations with KSE Consulting, Gnizdo is now ready for better customer engagement and more sales. Their commitment to quality, sustainability, and customization resonates with their target audience, establishing their reputation as a premium brand. Through the coaching approach of KSE Consulting and the expertise of Maksym Antonenko, Gnizdo now has a comprehensive strategy to align their business activities and goals, and excel in the competitive market.
KSE Consulting, true to its commitment to delivering value beyond expectations, went above and beyond to support Gnizdo in their journey. In addition to the comprehensive consulting services, KSE provided Gnizdo, along with the rest of the participating businesses, with a range of additional benefits and networking opportunities. These offerings aimed to empower and equip with the necessary resources to thrive in the challenging “business on the frontline” environment.
Recognizing the importance of online presence and visibility for small businesses, KSE secured two months of free promotion on the popular marketplace for them as well as 1 year of mobile app development and support.
The additional benefits offered by KSE exemplify their commitment to supporting small businesses that demonstrate a willingness to invest in their growth and the well-being of their employees. Amid the unprecedented disruption caused by the war, Ukrainian businesses have shown remarkable resilience and adaptability. While external observers might focus solely on the need for financial assistance, the reality is that Ukrainian entrepreneurs are striving to establish themselves as self-sustaining entities.
Another initiative that goes beyond consulting, is educational webinars. KSE experts started conducting webinars on the most asked topics, like financial management or funding.
I also try helping by promoting this initiative in Canada and inviting Canadian small businesses to participate in a “buddy” program. We already have 2 businesses interested and we are currently working on the designing the plan for our first zoom meeting! Exciting projects’ ideas are floating in the air. Read about this initiative here.
KSE Consulting aims to provide the necessary tools, guidance, and opportunities to help businesses thrive in the face of adversity. By supporting initiatives like Gnizdo, KSE contributes to the larger goal of fostering a vibrant and resilient entrepreneurial ecosystem in Ukraine.
