SOMA SOLUTIONS: PREPAREDNESS AND SUSTAINABILITY DURING
AND POST-CRISIS CASE STUDY SOLUTION
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SYNOPSIS
Soma Solutions was a small consulting firm based in Johannesburg, South Africa. Prior to the COVID-19
pandemic, Soma Solutions had provided face-to-face, on-site information and communications technology
n
(ICT) training on systems applications and products (SAP) and enterprise resource planning (ERP) to state-
tio
owned enterprises (SOEs). However, due to the nationwide lockdown and the need to curb the spread of
the virus, the company could no longer conduct on-site training. The SOEs, its main clients, also had to
close temporarily and shift to remote work. The economic upheaval left Soma Solutions facing uncertainty
lu
and instability. Despite having operated for only four years, it grappled with the decision to pivot or preserve
its existing approach. The challenge was to remain relevant and competitive while navigating evolving
norms and limited resources. How prepared was Soma Solutions to transition to virtual training? What
So
would pivoting look like for the company, and would it help sustain the business post-pandemic?
OBJECTIVES
• Identify the strengths and weaknesses of small consulting firms in achieving competitive advantage;
• Identify factors influencing small consulting firms’ competitiveness in providing solutions to SOEs; and
• Evaluate the capacity and competency of small consulting firms to take on large-scope and high-value
strategic projects in times of crisis, and suggest strategies for effective pivoting.
The Case Solution Starts From page 6
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ASSIGNMENT QUESTIONS
1. Identify the resources and capabilities of Soma Solutions and based on these, examine the firm’s
preparedness to pivot.
2. Use Porter’s Five Forces to analyze the preparedness of Soma Solutions to pivot and explain whether
it will be able to achieve competitive advantage.
The Case Solution Starts From page 6
,3. Applying the VRIO framework, determine whether Soma Solutions is prepared to pivot and show the
sustainability of the new way of offering training in the long run.
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The Case Solution Starts From page 6
,3. Applying the VRIO framework, determine whether Soma Solutions is prepared to pivot and show
the sustainability of the new way of offering training in the long run.
The resource-based view posits that for a firm’s resources to contribute to a sustainable competitive
advantage, they must add value, be unique, and be non-substitutable, as outlined in the VRIO framework.
Such resources equip the organization to counter rivals’ aggressive actions and exploit market
opportunities. They contribute to the firm’s operational effectiveness and efficiency relative to competitors.
A firm achieves a sustainable competitive advantage when its resources possess all four attributes
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encompassed by the VRIO framework,11 which stands for valuable, rare, inimitable, and organization.
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• Value: This refers to the valuable resources of the firm not possessed by a significant number of
competitors.12 Looking at the case, we see that the combined expertise of Soma Solutions team
m
members and their chief executive officer is an advantage. There are not many other small consulting
firms offering SAP and ERP training to SOEs. The firm could rely on the strong relationships it has
Sa
built with its corporate clients to retain them, while also minimizing the threat of competitors.
• Rarity: The more unique the resources of a company are, the more it will increase its competitive
advantage. If a firm does not have rare resources, it should expect to be operating at competitive parity
with other firms. From the case, we see that Radebe’s vast experience in SAP finance and controlling,
as well her highly experienced team in ICT, gives the firm a sustained competitive advantage. An
n
organization must have resources that are both valuable and rare to have a competitive advantage.
tio
• Imitability: These are resources that are not easily acquired by a competitor, and that contribute to a
lu
So
•
The Case Solution Starts From page 6
, EXHIBIT -1: STATEMENT OF SOMA SOLUTIONS’ FINANCIAL POSITION, FEBRUARY 2017–
FEBRUARY 2020
R9,000,000.00
R8,000,000.00
R7,000,000.00
R6,000,000.00
R5,000,000.00
R4,000,000.00
R3,000,000.00
e
R2,000,000.00
pl
R1,000,000.00
R-
February 2017 February 2018
m
February 2019 February 2020
Sa
Revenue R2,117,252.00 R2,421,880.00 R4,945,470.00 R7,711,077.00
n
tio
lu
So
The Case Solution Starts From page 6
AND POST-CRISIS CASE STUDY SOLUTION
e
pl
m
Sa
SYNOPSIS
Soma Solutions was a small consulting firm based in Johannesburg, South Africa. Prior to the COVID-19
pandemic, Soma Solutions had provided face-to-face, on-site information and communications technology
n
(ICT) training on systems applications and products (SAP) and enterprise resource planning (ERP) to state-
tio
owned enterprises (SOEs). However, due to the nationwide lockdown and the need to curb the spread of
the virus, the company could no longer conduct on-site training. The SOEs, its main clients, also had to
close temporarily and shift to remote work. The economic upheaval left Soma Solutions facing uncertainty
lu
and instability. Despite having operated for only four years, it grappled with the decision to pivot or preserve
its existing approach. The challenge was to remain relevant and competitive while navigating evolving
norms and limited resources. How prepared was Soma Solutions to transition to virtual training? What
So
would pivoting look like for the company, and would it help sustain the business post-pandemic?
OBJECTIVES
• Identify the strengths and weaknesses of small consulting firms in achieving competitive advantage;
• Identify factors influencing small consulting firms’ competitiveness in providing solutions to SOEs; and
• Evaluate the capacity and competency of small consulting firms to take on large-scope and high-value
strategic projects in times of crisis, and suggest strategies for effective pivoting.
The Case Solution Starts From page 6
, e
pl
m
Sa
n
tio
lu
So
ASSIGNMENT QUESTIONS
1. Identify the resources and capabilities of Soma Solutions and based on these, examine the firm’s
preparedness to pivot.
2. Use Porter’s Five Forces to analyze the preparedness of Soma Solutions to pivot and explain whether
it will be able to achieve competitive advantage.
The Case Solution Starts From page 6
,3. Applying the VRIO framework, determine whether Soma Solutions is prepared to pivot and show the
sustainability of the new way of offering training in the long run.
e
pl
m
Sa
n
tio
lu
So
The Case Solution Starts From page 6
,3. Applying the VRIO framework, determine whether Soma Solutions is prepared to pivot and show
the sustainability of the new way of offering training in the long run.
The resource-based view posits that for a firm’s resources to contribute to a sustainable competitive
advantage, they must add value, be unique, and be non-substitutable, as outlined in the VRIO framework.
Such resources equip the organization to counter rivals’ aggressive actions and exploit market
opportunities. They contribute to the firm’s operational effectiveness and efficiency relative to competitors.
A firm achieves a sustainable competitive advantage when its resources possess all four attributes
e
encompassed by the VRIO framework,11 which stands for valuable, rare, inimitable, and organization.
pl
• Value: This refers to the valuable resources of the firm not possessed by a significant number of
competitors.12 Looking at the case, we see that the combined expertise of Soma Solutions team
m
members and their chief executive officer is an advantage. There are not many other small consulting
firms offering SAP and ERP training to SOEs. The firm could rely on the strong relationships it has
Sa
built with its corporate clients to retain them, while also minimizing the threat of competitors.
• Rarity: The more unique the resources of a company are, the more it will increase its competitive
advantage. If a firm does not have rare resources, it should expect to be operating at competitive parity
with other firms. From the case, we see that Radebe’s vast experience in SAP finance and controlling,
as well her highly experienced team in ICT, gives the firm a sustained competitive advantage. An
n
organization must have resources that are both valuable and rare to have a competitive advantage.
tio
• Imitability: These are resources that are not easily acquired by a competitor, and that contribute to a
lu
So
•
The Case Solution Starts From page 6
, EXHIBIT -1: STATEMENT OF SOMA SOLUTIONS’ FINANCIAL POSITION, FEBRUARY 2017–
FEBRUARY 2020
R9,000,000.00
R8,000,000.00
R7,000,000.00
R6,000,000.00
R5,000,000.00
R4,000,000.00
R3,000,000.00
e
R2,000,000.00
pl
R1,000,000.00
R-
February 2017 February 2018
m
February 2019 February 2020
Sa
Revenue R2,117,252.00 R2,421,880.00 R4,945,470.00 R7,711,077.00
n
tio
lu
So
The Case Solution Starts From page 6
