Case Study Description of Doosan Infracore International: Portable Power Brand Transformation (B)
As Stefan Brosick, Director of Global Product Strategy wondered whether Doosan would benefit from an immediate re-branding, or if other branding strategies might be more effective, regional issues began to emerge. The challenge of selecting the optimal strategy (keep the IR brand, co-brand, extended retention, immediate re-brand) was compounded by international product and channel differences. These differences in turn affected key tactical branding decisions. Resolving these differences would impact not only which of the four brand transformation strategies to pursue but also whether they should be implemented globally or customized regionally. Learning objectives: The case illustrates the complexities of developing global branding strategies for companies with established lines of business throughout the world. Analyses of market similarities and differences for various branding elements can be conducted, leading to global standardization versus regional customization strategy decisions.
Authors :: Martin Roth, Dominique Turpin
Topics :: Sales & Marketing
Tags :: Business models, International business, Mergers & acquisitions, Project management, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "Doosan Infracore International: Portable Power Brand Transformation (B)" written by Martin Roth, Dominique Turpin includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Branding Doosan facing as an external strategic factors. Some of the topics covered in Doosan Infracore International: Portable Power Brand Transformation (B) case study are - Strategic Management Strategies, Business models, International business, Mergers & acquisitions, Project management and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Doosan Infracore International: Portable Power Brand Transformation (B) casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, increasing energy prices, there is increasing trade war between United States & China, technology disruption, geopolitical disruptions, increasing transportation and logistics costs,
wage bills are increasing, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Doosan Infracore International: Portable Power Brand Transformation (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Doosan Infracore International: Portable Power Brand Transformation (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Branding Doosan, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Branding Doosan 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 Doosan Infracore International: Portable Power Brand Transformation (B) can be done for the following purposes –
1. Strategic planning using facts provided in Doosan Infracore International: Portable Power Brand Transformation (B) case study
2. Improving business portfolio management of Branding Doosan
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 Branding Doosan
Strengths Doosan Infracore International: Portable Power Brand Transformation (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Branding Doosan in Doosan Infracore International: Portable Power Brand Transformation (B) Harvard Business Review case study are -
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Branding Doosan digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Branding Doosan 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.
Highly skilled collaborators
– Branding Doosan 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 Doosan Infracore International: Portable Power Brand Transformation (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Branding Doosan has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Branding Doosan 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.
High brand equity
– Branding Doosan has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Branding Doosan to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Branding Doosan is one of the most innovative firm in sector. Manager in Doosan Infracore International: Portable Power Brand Transformation (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Branding Doosan 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 Doosan Infracore International: Portable Power Brand Transformation (B) - 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 Sales & Marketing industry
– Doosan Infracore International: Portable Power Brand Transformation (B) firm has clearly differentiated products in the market place. This has enabled Branding Doosan to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Branding Doosan to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Doosan Infracore International: Portable Power Brand Transformation (B) 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
– Branding Doosan has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Doosan Infracore International: Portable Power Brand Transformation (B) 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 switching costs
– The high switching costs that Branding Doosan has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Diverse revenue streams
– Branding Doosan is present in almost all the verticals within the industry. This has provided firm in Doosan Infracore International: Portable Power Brand Transformation (B) 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.
Ability to recruit top talent
– Branding Doosan is one of the leading recruiters in the industry. Managers in the Doosan Infracore International: Portable Power Brand Transformation (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Doosan Infracore International: Portable Power Brand Transformation (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Doosan Infracore International: Portable Power Brand Transformation (B) are -
High operating costs
– Compare to the competitors, firm in the HBR case study Doosan Infracore International: Portable Power Brand Transformation (B) 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 Branding Doosan 's lucrative customers.
Need for greater diversity
– Branding Doosan 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Doosan Infracore International: Portable Power Brand Transformation (B), it seems that the employees of Branding Doosan don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Branding Doosan is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Doosan Infracore International: Portable Power Brand Transformation (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Doosan Infracore International: Portable Power Brand Transformation (B) 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 Branding Doosan has relatively successful track record of launching new products.
Lack of clear differentiation of Branding Doosan products
– To increase the profitability and margins on the products, Branding Doosan needs to provide more differentiated products than what it is currently offering in the marketplace.
High bargaining power of channel partners
– Because of the regulatory requirements, Martin Roth, Dominique Turpin suggests that, Branding Doosan 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.
High cash cycle compare to competitors
Branding Doosan 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.
Skills based hiring
– The stress on hiring functional specialists at Branding Doosan 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Doosan Infracore International: Portable Power Brand Transformation (B), in the dynamic environment Branding Doosan has struggled to respond to the nimble upstart competition. Branding Doosan has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study Doosan Infracore International: Portable Power Brand Transformation (B) 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 Doosan Infracore International: Portable Power Brand Transformation (B) can leverage the sales team experience to cultivate customer relationships as Branding Doosan is planning to shift buying processes online.
Opportunities Doosan Infracore International: Portable Power Brand Transformation (B) | 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 Doosan Infracore International: Portable Power Brand Transformation (B) are -
Better consumer reach
– The expansion of the 5G network will help Branding Doosan to increase its market reach. Branding Doosan 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.
Developing new processes and practices
– Branding Doosan 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.
Using analytics as competitive advantage
– Branding Doosan 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 Doosan Infracore International: Portable Power Brand Transformation (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Branding Doosan to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Branding Doosan can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Doosan Infracore International: Portable Power Brand Transformation (B) 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.
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. Branding Doosan can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Branding Doosan has opened avenues for new revenue streams for the organization in the industry. This can help Branding Doosan to build a more holistic ecosystem as suggested in the Doosan Infracore International: Portable Power Brand Transformation (B) case study. Branding Doosan can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Branding Doosan 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Branding Doosan is facing challenges because of the dominance of functional experts in the organization. Doosan Infracore International: Portable Power Brand Transformation (B) 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.
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 Branding Doosan 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.
Manufacturing automation
– Branding Doosan can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing 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.
Building a culture of innovation
– managers at Branding Doosan 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 Sales & Marketing segment.
Loyalty marketing
– Branding Doosan 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.
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. Branding Doosan can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Doosan Infracore International: Portable Power Brand Transformation (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Doosan Infracore International: Portable Power Brand Transformation (B) are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Branding Doosan with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Branding Doosan needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Increasing wage structure of Branding Doosan
– 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 Branding Doosan.
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.
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 Branding Doosan in the Sales & Marketing sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Branding Doosan 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.
Shortening product life cycle
– it is one of the major threat that Branding Doosan is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Branding Doosan 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 Doosan Infracore International: Portable Power Brand Transformation (B) .
High dependence on third party suppliers
– Branding Doosan 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Doosan Infracore International: Portable Power Brand Transformation (B), Branding Doosan 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 .
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. Branding Doosan 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.
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 Branding Doosan.
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.
Weighted SWOT Analysis of Doosan Infracore International: Portable Power Brand Transformation (B) 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 Doosan Infracore International: Portable Power Brand Transformation (B) 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 Doosan Infracore International: Portable Power Brand Transformation (B) 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 Doosan Infracore International: Portable Power Brand Transformation (B) 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 Doosan Infracore International: Portable Power Brand Transformation (B) 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 Branding Doosan needs to make to build a sustainable competitive advantage.
