Case Study Description of NTL Lemnis: Exploring the B2C Market
NTL Lemnis, a joint venture between NTL Electronics of India and Lemnis Lighting of the Netherlands, has ambitious sales targets and is considering entry into the business-to-consumer (B2C) segment. The company aims to offer energy-efficient LED products to Indian and international markets under the globally acclaimed Lemnis brand Pharox. Top management is planning a sales force structure for the consumer market and is analyzing the design of a sales force in the context of generalist and specialist structures. It is pondering the recruitment and selection strategies at NTL Lemnis so that it can hire a best-in-class sales force. What is the proper size of the sales team? Apprehensions about the effective distribution model to use to increase the reach of the company's products also persist. Sandeep Puri is affiliated with Institute of Management Technology, Ghaziaba.
Swot Analysis of "NTL Lemnis: Exploring the B2C Market" written by Geeta Mishra, Sandeep Puri includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Lemnis Ntl facing as an external strategic factors. Some of the topics covered in NTL Lemnis: Exploring the B2C Market case study are - Strategic Management Strategies, Talent management and Sales & Marketing.
Some of the macro environment factors that can be used to understand the NTL Lemnis: Exploring the B2C Market casestudy better are - – increasing energy prices, geopolitical disruptions, talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels,
technology disruption, increasing commodity prices, etc
Introduction to SWOT Analysis of NTL Lemnis: Exploring the B2C Market
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in NTL Lemnis: Exploring the B2C Market case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Lemnis Ntl, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Lemnis Ntl 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 NTL Lemnis: Exploring the B2C Market can be done for the following purposes –
1. Strategic planning using facts provided in NTL Lemnis: Exploring the B2C Market case study
2. Improving business portfolio management of Lemnis Ntl
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Lemnis Ntl
Strengths NTL Lemnis: Exploring the B2C Market | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Lemnis Ntl in NTL Lemnis: Exploring the B2C Market Harvard Business Review case study are -
Analytics focus
– Lemnis Ntl 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 Geeta Mishra, Sandeep Puri 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.
Sustainable margins compare to other players in Sales & Marketing industry
– NTL Lemnis: Exploring the B2C Market firm has clearly differentiated products in the market place. This has enabled Lemnis Ntl to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Lemnis Ntl to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Lemnis Ntl has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Lemnis Ntl 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.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Lemnis Ntl digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Lemnis Ntl 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.
Training and development
– Lemnis Ntl has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in NTL Lemnis: Exploring the B2C Market 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.
High brand equity
– Lemnis Ntl has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Lemnis Ntl to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Lemnis Ntl in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Lemnis Ntl is present in almost all the verticals within the industry. This has provided firm in NTL Lemnis: Exploring the B2C Market 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.
Learning organization
- Lemnis Ntl 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 Lemnis Ntl is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in NTL Lemnis: Exploring the B2C Market Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Sales & Marketing field
– Lemnis Ntl 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 Lemnis Ntl in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Lemnis Ntl 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.
Low bargaining power of suppliers
– Suppliers of Lemnis Ntl in the sector have low bargaining power. NTL Lemnis: Exploring the B2C Market has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Lemnis Ntl to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses NTL Lemnis: Exploring the B2C Market | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of NTL Lemnis: Exploring the B2C Market are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the NTL Lemnis: Exploring the B2C Market 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 Lemnis Ntl has relatively successful track record of launching new products.
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 Lemnis Ntl supply chain. Even after few cautionary changes mentioned in the HBR case study - NTL Lemnis: Exploring the B2C Market, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Lemnis Ntl vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Lemnis Ntl is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study NTL Lemnis: Exploring the B2C Market can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study NTL Lemnis: Exploring the B2C Market, in the dynamic environment Lemnis Ntl has struggled to respond to the nimble upstart competition. Lemnis Ntl has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Lemnis Ntl 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study NTL Lemnis: Exploring the B2C Market, is just above the industry average. Lemnis Ntl 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.
Slow decision making process
– As mentioned earlier in the report, Lemnis Ntl 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. Lemnis Ntl 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.
Increasing silos among functional specialists
– The organizational structure of Lemnis Ntl is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Lemnis Ntl needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Lemnis Ntl to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study NTL Lemnis: Exploring the B2C Market 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 NTL Lemnis: Exploring the B2C Market can leverage the sales team experience to cultivate customer relationships as Lemnis Ntl is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Lemnis Ntl, firm in the HBR case study NTL Lemnis: Exploring the B2C Market needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners
– Because of the regulatory requirements, Geeta Mishra, Sandeep Puri suggests that, Lemnis Ntl 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.
Opportunities NTL Lemnis: Exploring the B2C Market | 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 NTL Lemnis: Exploring the B2C Market are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Lemnis Ntl can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Lemnis Ntl can use these opportunities to build new business models that can help the communities that Lemnis Ntl operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Lemnis Ntl 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, NTL Lemnis: Exploring the B2C Market, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, Lemnis Ntl 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.
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 Lemnis Ntl 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Lemnis Ntl 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 Lemnis Ntl to hire the very best people irrespective of their geographical location.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Sales & Marketing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Lemnis Ntl 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. Lemnis Ntl 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.
Using analytics as competitive advantage
– Lemnis Ntl 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 NTL Lemnis: Exploring the B2C Market - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Lemnis Ntl 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. Lemnis Ntl can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Lemnis Ntl 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 Lemnis Ntl in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing 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 Lemnis Ntl in the consumer business. Now Lemnis Ntl can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Lemnis Ntl can develop new processes and procedures in Sales & Marketing 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.
Threats NTL Lemnis: Exploring the B2C Market External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study NTL Lemnis: Exploring the B2C Market are -
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 Lemnis Ntl business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study NTL Lemnis: Exploring the B2C Market, Lemnis Ntl may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
Environmental challenges
– Lemnis Ntl 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. Lemnis Ntl can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
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 Lemnis Ntl in the Sales & Marketing sector and impact the bottomline of the organization.
Consumer confidence and its impact on Lemnis Ntl 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.
Stagnating economy with rate increase
– Lemnis Ntl 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Lemnis Ntl in the Sales & Marketing industry. The Sales & Marketing 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.
Increasing wage structure of Lemnis Ntl
– 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 Lemnis Ntl.
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. Lemnis Ntl needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Lemnis Ntl is facing in Sales & Marketing 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. Lemnis Ntl 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
– Lemnis Ntl has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Lemnis Ntl needs to keep up with the evolution of technology in the Sales & Marketing 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.
Regulatory challenges
– Lemnis Ntl 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 Sales & Marketing industry regulations.
Weighted SWOT Analysis of NTL Lemnis: Exploring the B2C Market 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 NTL Lemnis: Exploring the B2C Market 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 NTL Lemnis: Exploring the B2C Market 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 NTL Lemnis: Exploring the B2C Market 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 NTL Lemnis: Exploring the B2C Market 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 Lemnis Ntl needs to make to build a sustainable competitive advantage.
