Case Study Description of Bridgeton Industries: Automotive Component & Fabrication Plant
Bridgeton Industries was experiencing reduced sales. To become more competitive it introduced a classification procedure for products based upon their productivity and other factors. Products were classified into three groups: world class, potentially world class, and non-world class. The firm outsources the non-world class products. This outsourcing causes the costs on the remaining products to increase because some costs associated with the outsourced products did not go away. These residual costs caused more products to become non-world class and hence candidates for outsourcing. The firm has entered the death spiral.
Swot Analysis of "Bridgeton Industries: Automotive Component & Fabrication Plant" written by Robin Cooper, Patricia J. Bost includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bridgeton Class facing as an external strategic factors. Some of the topics covered in Bridgeton Industries: Automotive Component & Fabrication Plant case study are - Strategic Management Strategies, Budgeting, Competition, Competitive strategy, Costs and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Bridgeton Industries: Automotive Component & Fabrication Plant casestudy better are - – technology disruption, there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, supply chains are disrupted by pandemic , there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing energy prices, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Bridgeton Industries: Automotive Component & Fabrication Plant
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Bridgeton Industries: Automotive Component & Fabrication Plant case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bridgeton Class, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bridgeton Class 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 Bridgeton Industries: Automotive Component & Fabrication Plant can be done for the following purposes –
1. Strategic planning using facts provided in Bridgeton Industries: Automotive Component & Fabrication Plant case study
2. Improving business portfolio management of Bridgeton Class
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Bridgeton Class
Strengths Bridgeton Industries: Automotive Component & Fabrication Plant | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bridgeton Class in Bridgeton Industries: Automotive Component & Fabrication Plant Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Bridgeton Class in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Finance & Accounting field
– Bridgeton Class 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 Bridgeton Class in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Bridgeton Class has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Bridgeton Class to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Finance & Accounting industry
– Bridgeton Industries: Automotive Component & Fabrication Plant firm has clearly differentiated products in the market place. This has enabled Bridgeton Class to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Bridgeton Class to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Bridgeton Class in the sector have low bargaining power. Bridgeton Industries: Automotive Component & Fabrication Plant has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Bridgeton Class to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Bridgeton Class has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Bridgeton Class 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.
Learning organization
- Bridgeton Class 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 Bridgeton Class is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Bridgeton Industries: Automotive Component & Fabrication Plant Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the Bridgeton Industries: Automotive Component & Fabrication Plant 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
– Bridgeton Class is one of the most innovative firm in sector. Manager in Bridgeton Industries: Automotive Component & Fabrication Plant Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Bridgeton Class has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Bridgeton Industries: Automotive Component & Fabrication Plant 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.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Bridgeton Class digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Bridgeton Class 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.
Cross disciplinary teams
– Horizontal connected teams at the Bridgeton Class 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.
Weaknesses Bridgeton Industries: Automotive Component & Fabrication Plant | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Bridgeton Industries: Automotive Component & Fabrication Plant are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Bridgeton Industries: Automotive Component & Fabrication Plant, in the dynamic environment Bridgeton Class has struggled to respond to the nimble upstart competition. Bridgeton Class 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 Bridgeton Class 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 - Bridgeton Industries: Automotive Component & Fabrication Plant should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Bridgeton Industries: Automotive Component & Fabrication Plant has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Bridgeton Class 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Bridgeton Class is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Bridgeton Industries: Automotive Component & Fabrication Plant can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Bridgeton Class 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. Bridgeton Class 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, Bridgeton Class 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.
Slow to strategic competitive environment developments
– As Bridgeton Industries: Automotive Component & Fabrication Plant HBR case study mentions - Bridgeton Class 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.
Lack of clear differentiation of Bridgeton Class products
– To increase the profitability and margins on the products, Bridgeton Class needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Bridgeton Class 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 bargaining power of channel partners
– Because of the regulatory requirements, Robin Cooper, Patricia J. Bost suggests that, Bridgeton Class 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Bridgeton Class 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.
Opportunities Bridgeton Industries: Automotive Component & Fabrication Plant | 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 Bridgeton Industries: Automotive Component & Fabrication Plant are -
Better consumer reach
– The expansion of the 5G network will help Bridgeton Class to increase its market reach. Bridgeton Class 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Bridgeton Class can use these opportunities to build new business models that can help the communities that Bridgeton Class operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Bridgeton Class 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 Bridgeton Class to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Bridgeton Class has opened avenues for new revenue streams for the organization in the industry. This can help Bridgeton Class to build a more holistic ecosystem as suggested in the Bridgeton Industries: Automotive Component & Fabrication Plant case study. Bridgeton Class can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Bridgeton Class can develop new processes and procedures in Finance & Accounting 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Bridgeton Class 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. Bridgeton Class 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.
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 Bridgeton Class 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Bridgeton Class can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Bridgeton Class can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Bridgeton Class in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting 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 Bridgeton Class in the consumer business. Now Bridgeton Class can target international markets with far fewer capital restrictions requirements than the existing system.
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. Bridgeton Class can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Bridgeton Class 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 Bridgeton Industries: Automotive Component & Fabrication Plant - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Bridgeton Class to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Bridgeton Industries: Automotive Component & Fabrication Plant External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Bridgeton Industries: Automotive Component & Fabrication Plant are -
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
– Bridgeton Class 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. Bridgeton Class can take advantage of this fund but it will also bring new competitors in the Finance & Accounting 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. Bridgeton Class 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.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Bridgeton Class can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Bridgeton Class business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Bridgeton Class
– 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 Bridgeton Class.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Bridgeton Class 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 Bridgeton Industries: Automotive Component & Fabrication Plant .
Consumer confidence and its impact on Bridgeton Class 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.
Regulatory challenges
– Bridgeton Class 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 Finance & Accounting industry regulations.
Stagnating economy with rate increase
– Bridgeton Class 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Bridgeton Industries: Automotive Component & Fabrication Plant, Bridgeton Class may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
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 Bridgeton Class.
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.
Weighted SWOT Analysis of Bridgeton Industries: Automotive Component & Fabrication Plant 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 Bridgeton Industries: Automotive Component & Fabrication Plant 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 Bridgeton Industries: Automotive Component & Fabrication Plant 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 Bridgeton Industries: Automotive Component & Fabrication Plant 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 Bridgeton Industries: Automotive Component & Fabrication Plant 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 Bridgeton Class needs to make to build a sustainable competitive advantage.
