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 - – challanges to central banks by blockchain based private currencies, increasing commodity prices, increasing household debt because of falling income levels, there is backlash against globalization, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation,
talent flight as more people leaving formal jobs, technology disruption, 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 -
Superior customer experience
– The customer experience strategy of Safertaxi Safertaxi's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous 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.
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.
Highly skilled collaborators
– Safertaxi Safertaxi's has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Safertaxi Safertaxi's 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 SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Safertaxi Safertaxi's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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.
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.
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.
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.
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.
Organizational Resilience of Safertaxi Safertaxi's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Safertaxi Safertaxi's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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 -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version, is just above the industry average. Safertaxi Safertaxi's needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Need for greater diversity
– Safertaxi Safertaxi's 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.
Lack of clear differentiation of Safertaxi Safertaxi's products
– To increase the profitability and margins on the products, Safertaxi Safertaxi's needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
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.
Aligning sales with marketing
– It come across in the case study SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version 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 SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version can leverage the sales team experience to cultivate customer relationships as Safertaxi Safertaxi's is planning to shift buying processes online.
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.
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 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.
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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Safertaxi Safertaxi's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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 -
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.
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. Safertaxi Safertaxi's 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. Safertaxi Safertaxi's 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Safertaxi Safertaxi's 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.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Safertaxi Safertaxi's 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 Safertaxi Safertaxi's to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Safertaxi Safertaxi's has opened avenues for new revenue streams for the organization in the industry. This can help Safertaxi Safertaxi's to build a more holistic ecosystem as suggested in the SaferTaxi: Connecting Taxis and Passengers in South America, Spanish Version case study. Safertaxi Safertaxi's can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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.
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.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Safertaxi Safertaxi's can use these opportunities to build new business models that can help the communities that Safertaxi Safertaxi's operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
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.
Manufacturing automation
– Safertaxi Safertaxi's 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.
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.
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 -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Safertaxi Safertaxi's 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.
Consumer confidence and its impact on Safertaxi Safertaxi's 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.
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.
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.
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.
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.
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.
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.
Regulatory challenges
– Safertaxi Safertaxi's 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.
Stagnating economy with rate increase
– Safertaxi Safertaxi's can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
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.
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.
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 .
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.