EPCOR Utilities Inc. (A): A Critical Community Consultation SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of EPCOR Utilities Inc. (A): A Critical Community Consultation
In January 2003, EPCOR Utilities (EPCOR) was facing great pressure from a radical community group that wanted the company out of its community of Rossdale - where EPCOR was founded in 1891 and had been operating since. The pressure had mounted to the point that EPCOR's sole shareholder, the City of Edmonton, had asked that EPCOR prepare a long-term plan for its operations in Rossdale as part of a formal review of the land use at the site. Operations of EPCOR were $3 billion. The case encourages students to think through the senior vice-president of public and government relations job of engaging (or at least placating) the community from a philosophical level to the practical details of implementation.
Swot Analysis of "EPCOR Utilities Inc. (A): A Critical Community Consultation" written by Pratima Bansal, Tom Ewart includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Epcor Rossdale facing as an external strategic factors. Some of the topics covered in EPCOR Utilities Inc. (A): A Critical Community Consultation case study are - Strategic Management Strategies, Conflict, Corporate governance, Social responsibility and Organizational Development.
Some of the macro environment factors that can be used to understand the EPCOR Utilities Inc. (A): A Critical Community Consultation casestudy better are - – challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, increasing energy prices, increasing commodity prices, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion,
technology disruption, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of EPCOR Utilities Inc. (A): A Critical Community Consultation
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in EPCOR Utilities Inc. (A): A Critical Community Consultation case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Epcor Rossdale, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Epcor Rossdale 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 EPCOR Utilities Inc. (A): A Critical Community Consultation can be done for the following purposes –
1. Strategic planning using facts provided in EPCOR Utilities Inc. (A): A Critical Community Consultation case study
2. Improving business portfolio management of Epcor Rossdale
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Epcor Rossdale
Strengths EPCOR Utilities Inc. (A): A Critical Community Consultation | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Epcor Rossdale in EPCOR Utilities Inc. (A): A Critical Community Consultation Harvard Business Review case study are -
Organizational Resilience of Epcor Rossdale
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Epcor Rossdale does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Organizational Development field
– Epcor Rossdale is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Epcor Rossdale in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Epcor Rossdale in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Epcor Rossdale has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Epcor Rossdale to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the EPCOR Utilities Inc. (A): A Critical Community Consultation Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Successful track record of launching new products
– Epcor Rossdale has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Epcor Rossdale 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.
Cross disciplinary teams
– Horizontal connected teams at the Epcor Rossdale 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.
Sustainable margins compare to other players in Organizational Development industry
– EPCOR Utilities Inc. (A): A Critical Community Consultation firm has clearly differentiated products in the market place. This has enabled Epcor Rossdale to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Epcor Rossdale to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Epcor Rossdale has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study EPCOR Utilities Inc. (A): A Critical Community Consultation - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Epcor Rossdale is one of the leading recruiters in the industry. Managers in the EPCOR Utilities Inc. (A): A Critical Community Consultation are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Epcor Rossdale 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 Epcor Rossdale is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in EPCOR Utilities Inc. (A): A Critical Community Consultation Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Epcor Rossdale 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 EPCOR Utilities Inc. (A): A Critical Community Consultation | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of EPCOR Utilities Inc. (A): A Critical Community Consultation are -
Capital Spending Reduction
– Even during the low interest decade, Epcor Rossdale 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 industry using digital technology.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Epcor Rossdale is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study EPCOR Utilities Inc. (A): A Critical Community Consultation can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Pratima Bansal, Tom Ewart suggests that, Epcor Rossdale is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Aligning sales with marketing
– It come across in the case study EPCOR Utilities Inc. (A): A Critical Community Consultation that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case EPCOR Utilities Inc. (A): A Critical Community Consultation can leverage the sales team experience to cultivate customer relationships as Epcor Rossdale is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Epcor Rossdale needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Need for greater diversity
– Epcor Rossdale has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Epcor Rossdale supply chain. Even after few cautionary changes mentioned in the HBR case study - EPCOR Utilities Inc. (A): A Critical Community Consultation, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Epcor Rossdale vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Epcor Rossdale has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study EPCOR Utilities Inc. (A): A Critical Community Consultation, in the dynamic environment Epcor Rossdale has struggled to respond to the nimble upstart competition. Epcor Rossdale has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Epcor Rossdale has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - EPCOR Utilities Inc. (A): A Critical Community Consultation should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As EPCOR Utilities Inc. (A): A Critical Community Consultation HBR case study mentions - Epcor Rossdale takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Opportunities EPCOR Utilities Inc. (A): A Critical Community Consultation | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study EPCOR Utilities Inc. (A): A Critical Community Consultation are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Epcor Rossdale in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Epcor Rossdale in the consumer business. Now Epcor Rossdale can target international markets with far fewer capital restrictions requirements than the existing system.
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 Epcor Rossdale 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.
Manufacturing automation
– Epcor Rossdale can use the latest technology developments to improve its manufacturing and designing process in Organizational Development segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Epcor Rossdale to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Epcor Rossdale to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Epcor Rossdale can use these opportunities to build new business models that can help the communities that Epcor Rossdale operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Epcor Rossdale can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Epcor Rossdale can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Buying journey improvements
– Epcor Rossdale can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. EPCOR Utilities Inc. (A): A Critical Community Consultation suggest that firm 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.
Leveraging digital technologies
– Epcor Rossdale can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Learning at scale
– Online learning technologies has now opened space for Epcor Rossdale 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.
Better consumer reach
– The expansion of the 5G network will help Epcor Rossdale to increase its market reach. Epcor Rossdale 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Epcor Rossdale can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Epcor Rossdale 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.
Threats EPCOR Utilities Inc. (A): A Critical Community Consultation External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study EPCOR Utilities Inc. (A): A Critical Community Consultation are -
High dependence on third party suppliers
– Epcor Rossdale 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.
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. Epcor Rossdale 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.
Shortening product life cycle
– it is one of the major threat that Epcor Rossdale is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Epcor Rossdale 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 the industry and other sectors.
Easy access to finance
– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Epcor Rossdale can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Epcor Rossdale has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Epcor Rossdale needs to keep up with the evolution of technology in the Organizational Development 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Epcor Rossdale can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study EPCOR Utilities Inc. (A): A Critical Community Consultation .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study EPCOR Utilities Inc. (A): A Critical Community Consultation, Epcor Rossdale may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Epcor Rossdale in the Organizational Development sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Epcor Rossdale in the Organizational Development industry. The Organizational Development industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Epcor Rossdale business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Epcor Rossdale 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 Organizational Development industry regulations.
Weighted SWOT Analysis of EPCOR Utilities Inc. (A): A Critical Community Consultation Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study EPCOR Utilities Inc. (A): A Critical Community Consultation 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 the case study EPCOR Utilities Inc. (A): A Critical Community Consultation 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 the Harvard case study EPCOR Utilities Inc. (A): A Critical Community Consultation 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 EPCOR Utilities Inc. (A): A Critical Community Consultation is 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 Epcor Rossdale needs to make to build a sustainable competitive advantage.