Case Study Description of Technology Driven Transformation at Comair Limited
Comair Limited was South Africa's largest private airline and consisted of British Airways SA and the low-cost airline kulula.com. After acquiring more fuel-efficient aircraft, Comair decided to adopt Sabre, a reservation and scheduling technology platform. Initially, some Comair executives thought that the Sabre implementation was an IT project, but they soon realized that all employees were affected and that a culture change was required to successfully implement the new standardized way of working. An organizational transformation company was hired and "Operation Crossover" was created as a reference point for employees and metaphor for change in order to enable the change process, starting with a change readiness assessment and culture change roadmap. How could Comair's CEO capitalize on the positive changes from this project and maintain the profitability and growth of the last 68 years? Caren Scheepers is affiliated with University of Pretoria.
Swot Analysis of "Technology Driven Transformation at Comair Limited" written by Caren Scheepers, Maxine Jaffit, Jabu Maphalala includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Comair Sabre facing as an external strategic factors. Some of the topics covered in Technology Driven Transformation at Comair Limited case study are - Strategic Management Strategies, Leadership transitions, Organizational culture and Organizational Development.
Some of the macro environment factors that can be used to understand the Technology Driven Transformation at Comair Limited casestudy better are - – cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, wage bills are increasing, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, geopolitical disruptions,
competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, etc
Introduction to SWOT Analysis of Technology Driven Transformation at Comair Limited
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Technology Driven Transformation at Comair Limited case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Comair Sabre, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Comair Sabre 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 Technology Driven Transformation at Comair Limited can be done for the following purposes –
1. Strategic planning using facts provided in Technology Driven Transformation at Comair Limited case study
2. Improving business portfolio management of Comair Sabre
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 Comair Sabre
Strengths Technology Driven Transformation at Comair Limited | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Comair Sabre in Technology Driven Transformation at Comair Limited Harvard Business Review case study are -
Diverse revenue streams
– Comair Sabre is present in almost all the verticals within the industry. This has provided firm in Technology Driven Transformation at Comair Limited 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.
High brand equity
– Comair Sabre has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Comair Sabre to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Comair Sabre in the sector have low bargaining power. Technology Driven Transformation at Comair Limited has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Comair Sabre to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Comair Sabre 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 Comair Sabre is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Technology Driven Transformation at Comair Limited Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Comair Sabre 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 Technology Driven Transformation at Comair Limited - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Organizational Development industry
– Technology Driven Transformation at Comair Limited firm has clearly differentiated products in the market place. This has enabled Comair Sabre to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped Comair Sabre to invest into research and development (R&D) and innovation.
Organizational Resilience of Comair Sabre
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Comair Sabre 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
– Comair Sabre 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 Comair Sabre in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Comair Sabre digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Comair Sabre 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.
Ability to recruit top talent
– Comair Sabre is one of the leading recruiters in the industry. Managers in the Technology Driven Transformation at Comair Limited are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Comair Sabre is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Comair Sabre has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Technology Driven Transformation at Comair Limited 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.
Weaknesses Technology Driven Transformation at Comair Limited | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Technology Driven Transformation at Comair Limited are -
Lack of clear differentiation of Comair Sabre products
– To increase the profitability and margins on the products, Comair Sabre needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow decision making process
– As mentioned earlier in the report, Comair Sabre 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. Comair Sabre 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.
Interest costs
– Compare to the competition, Comair Sabre 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Technology Driven Transformation at Comair Limited 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 Comair Sabre has relatively successful track record of launching new products.
Products dominated business model
– Even though Comair Sabre 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 - Technology Driven Transformation at Comair Limited should strive to include more intangible value offerings along with its core products and services.
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 Comair Sabre supply chain. Even after few cautionary changes mentioned in the HBR case study - Technology Driven Transformation at Comair Limited, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Comair Sabre vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Comair Sabre, firm in the HBR case study Technology Driven Transformation at Comair Limited needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Technology Driven Transformation at Comair Limited HBR case study mentions - Comair Sabre 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Comair Sabre 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
– Comair Sabre 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.
Capital Spending Reduction
– Even during the low interest decade, Comair Sabre 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.
Opportunities Technology Driven Transformation at Comair Limited | 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 Technology Driven Transformation at Comair Limited are -
Developing new processes and practices
– Comair Sabre 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Comair Sabre 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.
Building a culture of innovation
– managers at Comair Sabre 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. Comair Sabre can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Comair Sabre can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Comair Sabre 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, Technology Driven Transformation at Comair Limited, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Comair Sabre can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Technology Driven Transformation at Comair Limited 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.
Creating value in data economy
– The success of analytics program of Comair Sabre has opened avenues for new revenue streams for the organization in the industry. This can help Comair Sabre to build a more holistic ecosystem as suggested in the Technology Driven Transformation at Comair Limited case study. Comair Sabre can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Comair Sabre is facing challenges because of the dominance of functional experts in the organization. Technology Driven Transformation at Comair Limited 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.
Loyalty marketing
– Comair Sabre 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.
Learning at scale
– Online learning technologies has now opened space for Comair Sabre 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.
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. Comair Sabre 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. Comair Sabre 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.
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 Comair Sabre in the consumer business. Now Comair Sabre can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Technology Driven Transformation at Comair Limited External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Technology Driven Transformation at Comair Limited are -
Shortening product life cycle
– it is one of the major threat that Comair Sabre is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Comair Sabre
– 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 Comair Sabre.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Comair Sabre 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.
Stagnating economy with rate increase
– Comair Sabre 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Comair Sabre with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
Environmental challenges
– Comair Sabre 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. Comair Sabre can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Consumer confidence and its impact on Comair Sabre 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. Comair Sabre can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Comair Sabre.
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. Comair Sabre needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
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 Comair Sabre in the Organizational Development sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Comair Sabre 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.
Weighted SWOT Analysis of Technology Driven Transformation at Comair Limited 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 Technology Driven Transformation at Comair Limited 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 Technology Driven Transformation at Comair Limited 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 Technology Driven Transformation at Comair Limited 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 Technology Driven Transformation at Comair Limited 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 Comair Sabre needs to make to build a sustainable competitive advantage.