SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Organizational Development
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version
SaferTaxi, a taxi booking service in South America must develop its mobilization strategy; that is, it must attract enough passengers and drivers to make its service worthwhile for all. Drivers hesitate to pay for SaferTaxi's smartphones and service unless these will deliver passenger bookings -- and passengers have no reason to sign up unless drivers are available. Meanwhile, regulators question the permissibility of online taxi booking in light of regulatory requirements, and some existing taxi booking vendors feel threatened by SaferTaxi's efforts to enter the market. As SaferTaxi attempts to satisfy these diverse constituents, international competition looms. What should SaferTaxi's founders do next?
Swot Analysis of "SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version" written by Peter A. Coles, Benjamin Edelman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Safertaxi Safertaxi's facing as an external strategic factors. Some of the topics covered in SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version case study are - Strategic Management Strategies, Networking, Regulation and Organizational Development.
Some of the macro environment factors that can be used to understand the SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version casestudy better are - – central banks are concerned over increasing inflation, supply chains are disrupted by pandemic , increasing commodity prices, talent flight as more people leaving formal jobs, geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing,
there is backlash against globalization, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Safertaxi Safertaxi's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Safertaxi Safertaxi's 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 SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version case study
2. Improving business portfolio management of Safertaxi Safertaxi's
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 Safertaxi Safertaxi's
Strengths SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Safertaxi Safertaxi's in SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version Harvard Business Review case study are -
Training and development
– Safertaxi Safertaxi's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Successful track record of launching new products
– Safertaxi Safertaxi's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Safertaxi Safertaxi's 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.
Ability to recruit top talent
– Safertaxi Safertaxi's is one of the leading recruiters in the industry. Managers in the SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Safertaxi Safertaxi's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Safertaxi Safertaxi's has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
High brand equity
– Safertaxi Safertaxi's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Safertaxi Safertaxi's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Safertaxi Safertaxi's is present in almost all the verticals within the industry. This has provided firm in SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Sustainable margins compare to other players in Organizational Development industry
– SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version firm has clearly differentiated products in the market place. This has enabled Safertaxi Safertaxi's to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Safertaxi Safertaxi's to invest into research and development (R&D) and innovation.
Analytics focus
– Safertaxi Safertaxi's is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Peter A. Coles, Benjamin Edelman can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Operational resilience
– The operational resilience strategy in the SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version 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.
Innovation driven organization
– Safertaxi Safertaxi's is one of the most innovative firm in sector. Manager in SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Safertaxi Safertaxi's in the sector have low bargaining power. SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Safertaxi Safertaxi's to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Organizational Development field
– Safertaxi Safertaxi's 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 Safertaxi Safertaxi's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version, in the dynamic environment Safertaxi Safertaxi's has struggled to respond to the nimble upstart competition. Safertaxi Safertaxi's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Safertaxi Safertaxi's has relatively successful track record of launching new products.
High cash cycle compare to competitors
Safertaxi Safertaxi's has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Capital Spending Reduction
– Even during the low interest decade, Safertaxi Safertaxi's 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.
Skills based hiring
– The stress on hiring functional specialists at Safertaxi Safertaxi's has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Slow to strategic competitive environment developments
– As SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version HBR case study mentions - Safertaxi Safertaxi's 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.
No frontier risks strategy
– After analyzing the HBR case study SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version, it seems that company is thinking about the frontier risks that can impact Organizational Development strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow decision making process
– As mentioned earlier in the report, Safertaxi Safertaxi's has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Safertaxi Safertaxi's even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Products dominated business model
– Even though Safertaxi Safertaxi's 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 - SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Safertaxi Safertaxi's is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Safertaxi Safertaxi's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Safertaxi Safertaxi's to focus more on services rather than just following the product oriented approach.
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 Safertaxi Safertaxi's supply chain. Even after few cautionary changes mentioned in the HBR case study - SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Safertaxi Safertaxi's vulnerable to further global disruptions in South East Asia.
Opportunities SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version | 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 SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version are -
Building a culture of innovation
– managers at Safertaxi Safertaxi's can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Organizational Development segment.
Loyalty marketing
– Safertaxi Safertaxi's has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Safertaxi Safertaxi's can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Safertaxi Safertaxi's to increase its market reach. Safertaxi Safertaxi's 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Safertaxi Safertaxi's is facing challenges because of the dominance of functional experts in the organization. SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
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 Safertaxi Safertaxi's in the consumer business. Now Safertaxi Safertaxi's can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Safertaxi Safertaxi's 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Safertaxi Safertaxi's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Safertaxi Safertaxi's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Safertaxi Safertaxi's 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.
Developing new processes and practices
– Safertaxi Safertaxi's can develop new processes and procedures in Organizational Development industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Using analytics as competitive advantage
– Safertaxi Safertaxi's has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Safertaxi Safertaxi's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Safertaxi Safertaxi's 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.
Threats SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version are -
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Safertaxi Safertaxi's.
High dependence on third party suppliers
– Safertaxi Safertaxi's 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.
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. Safertaxi Safertaxi's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing wage structure of Safertaxi Safertaxi's
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Safertaxi Safertaxi's.
Environmental challenges
– Safertaxi Safertaxi's needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Safertaxi Safertaxi's can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
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. Safertaxi Safertaxi's 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.
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.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Safertaxi Safertaxi's needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Shortening product life cycle
– it is one of the major threat that Safertaxi Safertaxi's is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Safertaxi Safertaxi's in the Organizational Development sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version, Safertaxi Safertaxi's 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 .
Technology acceleration in Forth Industrial Revolution
– Safertaxi Safertaxi's has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, Safertaxi Safertaxi's 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.
Weighted SWOT Analysis of SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version 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 SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version 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 SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version 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 SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version 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 SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version 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 Safertaxi Safertaxi's needs to make to build a sustainable competitive advantage.