Swot Analysis of "Ingersoll-Rand (C): Managing Multiple Channels--1987" written by V. Kasturi Rangan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Baldwin Ingersoll facing as an external strategic factors. Some of the topics covered in Ingersoll-Rand (C): Managing Multiple Channels--1987 case study are - Strategic Management Strategies, Product development, Sales and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Ingersoll-Rand (C): Managing Multiple Channels--1987 casestudy better are - – cloud computing is disrupting traditional business models, increasing commodity prices, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, technology disruption, geopolitical disruptions,
there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Ingersoll-Rand (C): Managing Multiple Channels--1987
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Ingersoll-Rand (C): Managing Multiple Channels--1987 case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Baldwin Ingersoll, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Baldwin Ingersoll 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 Ingersoll-Rand (C): Managing Multiple Channels--1987 can be done for the following purposes –
1. Strategic planning using facts provided in Ingersoll-Rand (C): Managing Multiple Channels--1987 case study
2. Improving business portfolio management of Baldwin Ingersoll
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 Baldwin Ingersoll
Strengths Ingersoll-Rand (C): Managing Multiple Channels--1987 | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Baldwin Ingersoll in Ingersoll-Rand (C): Managing Multiple Channels--1987 Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Baldwin Ingersoll 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.
Training and development
– Baldwin Ingersoll has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Ingersoll-Rand (C): Managing Multiple Channels--1987 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.
Organizational Resilience of Baldwin Ingersoll
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Baldwin Ingersoll does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Baldwin Ingersoll 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 Ingersoll-Rand (C): Managing Multiple Channels--1987 - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Baldwin Ingersoll has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Baldwin Ingersoll 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.
Ability to recruit top talent
– Baldwin Ingersoll is one of the leading recruiters in the industry. Managers in the Ingersoll-Rand (C): Managing Multiple Channels--1987 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
– Baldwin Ingersoll is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Baldwin Ingersoll digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Baldwin Ingersoll 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.
High brand equity
– Baldwin Ingersoll has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Baldwin Ingersoll to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Baldwin Ingersoll is one of the most innovative firm in sector. Manager in Ingersoll-Rand (C): Managing Multiple Channels--1987 Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Sales & Marketing industry
– Ingersoll-Rand (C): Managing Multiple Channels--1987 firm has clearly differentiated products in the market place. This has enabled Baldwin Ingersoll to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Baldwin Ingersoll to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Baldwin Ingersoll 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.
Weaknesses Ingersoll-Rand (C): Managing Multiple Channels--1987 | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ingersoll-Rand (C): Managing Multiple Channels--1987 are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Baldwin Ingersoll is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Ingersoll-Rand (C): Managing Multiple Channels--1987 can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Ingersoll-Rand (C): Managing Multiple Channels--1987 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 Ingersoll-Rand (C): Managing Multiple Channels--1987 can leverage the sales team experience to cultivate customer relationships as Baldwin Ingersoll is planning to shift buying processes online.
Interest costs
– Compare to the competition, Baldwin Ingersoll 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Baldwin Ingersoll 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.
No frontier risks strategy
– After analyzing the HBR case study Ingersoll-Rand (C): Managing Multiple Channels--1987, it seems that company is thinking about the frontier risks that can impact Sales & Marketing strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Ingersoll-Rand (C): Managing Multiple Channels--1987 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 Baldwin Ingersoll has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, firm in the HBR case study Ingersoll-Rand (C): Managing Multiple Channels--1987 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 Baldwin Ingersoll 's lucrative customers.
Skills based hiring
– The stress on hiring functional specialists at Baldwin Ingersoll 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.
Need for greater diversity
– Baldwin Ingersoll 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.
Low market penetration in new markets
– Outside its home market of Baldwin Ingersoll, firm in the HBR case study Ingersoll-Rand (C): Managing Multiple Channels--1987 needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Baldwin Ingersoll 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 - Ingersoll-Rand (C): Managing Multiple Channels--1987 should strive to include more intangible value offerings along with its core products and services.
Opportunities Ingersoll-Rand (C): Managing Multiple Channels--1987 | 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 Ingersoll-Rand (C): Managing Multiple Channels--1987 are -
Using analytics as competitive advantage
– Baldwin Ingersoll 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 Ingersoll-Rand (C): Managing Multiple Channels--1987 - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Baldwin Ingersoll to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Baldwin Ingersoll 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Baldwin Ingersoll can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Baldwin Ingersoll can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Baldwin Ingersoll can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Ingersoll-Rand (C): Managing Multiple Channels--1987 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.
Loyalty marketing
– Baldwin Ingersoll 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.
Creating value in data economy
– The success of analytics program of Baldwin Ingersoll has opened avenues for new revenue streams for the organization in the industry. This can help Baldwin Ingersoll to build a more holistic ecosystem as suggested in the Ingersoll-Rand (C): Managing Multiple Channels--1987 case study. Baldwin Ingersoll can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Baldwin Ingersoll 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. Baldwin Ingersoll 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.
Leveraging digital technologies
– Baldwin Ingersoll can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Baldwin Ingersoll 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 Baldwin Ingersoll in the consumer business. Now Baldwin Ingersoll can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Baldwin Ingersoll 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 Baldwin Ingersoll to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Baldwin Ingersoll is facing challenges because of the dominance of functional experts in the organization. Ingersoll-Rand (C): Managing Multiple Channels--1987 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.
Threats Ingersoll-Rand (C): Managing Multiple Channels--1987 External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Ingersoll-Rand (C): Managing Multiple Channels--1987 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.
Regulatory challenges
– Baldwin Ingersoll 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.
Shortening product life cycle
– it is one of the major threat that Baldwin Ingersoll is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Baldwin Ingersoll 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. Baldwin Ingersoll can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Baldwin Ingersoll with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Baldwin Ingersoll 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 Ingersoll-Rand (C): Managing Multiple Channels--1987 .
Increasing wage structure of Baldwin Ingersoll
– 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 Baldwin Ingersoll.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Ingersoll-Rand (C): Managing Multiple Channels--1987, Baldwin Ingersoll 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 .
Consumer confidence and its impact on Baldwin Ingersoll 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.
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 Baldwin Ingersoll in the Sales & Marketing sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Baldwin Ingersoll 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.
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. Baldwin Ingersoll needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
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. Baldwin Ingersoll 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.
Weighted SWOT Analysis of Ingersoll-Rand (C): Managing Multiple Channels--1987 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 Ingersoll-Rand (C): Managing Multiple Channels--1987 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 Ingersoll-Rand (C): Managing Multiple Channels--1987 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 Ingersoll-Rand (C): Managing Multiple Channels--1987 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 Ingersoll-Rand (C): Managing Multiple Channels--1987 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 Baldwin Ingersoll needs to make to build a sustainable competitive advantage.
