Case Study Description of Godrej Security Solutions Ltd: Moving Consumers to Action
Godrej Security Solutions (GSS) offered both physical security products (such as safes, lockers, etc.) and electronic security products (such as cameras with analytics, closed circuit television, biometric and access control systems, burglar alarms, etc.). Although homeowners were evidently worried about their security, they were typically passive and reactive - as opposed to proactive - in addressing the problem. GSS had launched two effective advertising campaigns; however, continuing to communicate the importance of security solutions and converting this buyer inertia to action was fundamental to its ongoing success. What should the company's communication strategy be? Bhagyalakshmi Venkatesh is affiliated with Indian Institute of Management Indore.
Swot Analysis of "Godrej Security Solutions Ltd: Moving Consumers to Action" written by Bhagyalakshmi Venkatesh, Mehernosh Pithawalla, Suruchi Trivedi includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Security Gss facing as an external strategic factors. Some of the topics covered in Godrej Security Solutions Ltd: Moving Consumers to Action case study are - Strategic Management Strategies, and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Godrej Security Solutions Ltd: Moving Consumers to Action casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, increasing commodity prices, geopolitical disruptions, cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies,
banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Godrej Security Solutions Ltd: Moving Consumers to Action
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Godrej Security Solutions Ltd: Moving Consumers to Action case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Security Gss, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Security Gss 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 Godrej Security Solutions Ltd: Moving Consumers to Action can be done for the following purposes –
1. Strategic planning using facts provided in Godrej Security Solutions Ltd: Moving Consumers to Action case study
2. Improving business portfolio management of Security Gss
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 Security Gss
Strengths Godrej Security Solutions Ltd: Moving Consumers to Action | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Security Gss in Godrej Security Solutions Ltd: Moving Consumers to Action Harvard Business Review case study are -
Ability to lead change in Sales & Marketing field
– Security Gss 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 Security Gss in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Security Gss has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Security Gss 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.
Highly skilled collaborators
– Security Gss 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 Godrej Security Solutions Ltd: Moving Consumers to Action HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Security Gss 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 Bhagyalakshmi Venkatesh, Mehernosh Pithawalla, Suruchi Trivedi 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.
Organizational Resilience of Security Gss
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Security Gss does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Security Gss in the sector have low bargaining power. Godrej Security Solutions Ltd: Moving Consumers to Action has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Security Gss to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Security Gss 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 Godrej Security Solutions Ltd: Moving Consumers to Action - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Security Gss digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Security Gss 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.
Strong track record of project management
– Security Gss is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Security Gss 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
– Security Gss is present in almost all the verticals within the industry. This has provided firm in Godrej Security Solutions Ltd: Moving Consumers to Action 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.
Training and development
– Security Gss has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Godrej Security Solutions Ltd: Moving Consumers to Action Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Weaknesses Godrej Security Solutions Ltd: Moving Consumers to Action | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Godrej Security Solutions Ltd: Moving Consumers to Action are -
Products dominated business model
– Even though Security Gss 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 - Godrej Security Solutions Ltd: Moving Consumers to Action should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Security Gss is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Security Gss needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Security Gss to focus more on services rather than just following the product oriented approach.
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 Security Gss supply chain. Even after few cautionary changes mentioned in the HBR case study - Godrej Security Solutions Ltd: Moving Consumers to Action, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Security Gss vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Security Gss 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.
Lack of clear differentiation of Security Gss products
– To increase the profitability and margins on the products, Security Gss needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Godrej Security Solutions Ltd: Moving Consumers to Action 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 Security Gss has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Security Gss has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Skills based hiring
– The stress on hiring functional specialists at Security Gss 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 Godrej Security Solutions Ltd: Moving Consumers to Action, in the dynamic environment Security Gss has struggled to respond to the nimble upstart competition. Security Gss has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Godrej Security Solutions Ltd: Moving Consumers to Action, is just above the industry average. Security Gss 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Security Gss 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 Godrej Security Solutions Ltd: Moving Consumers to Action | 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 Godrej Security Solutions Ltd: Moving Consumers to Action are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Security Gss is facing challenges because of the dominance of functional experts in the organization. Godrej Security Solutions Ltd: Moving Consumers to Action 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Security Gss can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Security Gss 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Security Gss can use these opportunities to build new business models that can help the communities that Security Gss operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Security Gss 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.
Using analytics as competitive advantage
– Security Gss 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 Godrej Security Solutions Ltd: Moving Consumers to Action - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Security Gss to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Security Gss to increase its market reach. Security Gss 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.
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. Security Gss can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Security Gss in the consumer business. Now Security Gss 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 Security Gss 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 Security Gss to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Security Gss 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, Godrej Security Solutions Ltd: Moving Consumers to Action, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Security Gss 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.
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. Security Gss can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Godrej Security Solutions Ltd: Moving Consumers to Action External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Godrej Security Solutions Ltd: Moving Consumers to Action are -
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. Security Gss needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
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.
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. Security Gss 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.
Environmental challenges
– Security Gss 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. Security Gss can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Security Gss 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Godrej Security Solutions Ltd: Moving Consumers to Action, Security Gss 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 Security Gss 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Security Gss with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Security Gss has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Security Gss 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.
Easy access to finance
– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Security Gss can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Security Gss is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Security Gss.
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 Security Gss in the Sales & Marketing sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Godrej Security Solutions Ltd: Moving Consumers to Action 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 Godrej Security Solutions Ltd: Moving Consumers to Action 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 Godrej Security Solutions Ltd: Moving Consumers to Action 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 Godrej Security Solutions Ltd: Moving Consumers to Action 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 Godrej Security Solutions Ltd: Moving Consumers to Action 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 Security Gss needs to make to build a sustainable competitive advantage.
