ArcelorMittal in India: Sustainable Partnership Model SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of ArcelorMittal in India: Sustainable Partnership Model
The case explores a public-private partnership initiative on environment education in India, highlighting the strategic, institutional, and reputational implications for corporate social responsibility in an emerging country context. Launched in 2010 with a target to reach 200,000 schools, "Paryavaran Mitra" (Friends of the Environment) was a multi-layered collaboration with three primary and more than 160 secondary partners. The case is positioned in 2013, when the senior manager of corporate responsibility for the firm that serves as the corporate sponsor of the project must make a decision about the future of the initiative. Asha Kaul is affiliated with Indian Institute of Management, Ahmedabad. Vidhi Chaudhri is affiliated with Erasmus University - Rotterdam
Swot Analysis of "ArcelorMittal in India: Sustainable Partnership Model" written by Asha Kaul, Vidhi Chaudhri includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Chaudhri Erasmus facing as an external strategic factors. Some of the topics covered in ArcelorMittal in India: Sustainable Partnership Model case study are - Strategic Management Strategies, Joint ventures, Social responsibility and Strategy & Execution.
Some of the macro environment factors that can be used to understand the ArcelorMittal in India: Sustainable Partnership Model casestudy better are - – increasing commodity prices, there is backlash against globalization, wage bills are increasing, technology disruption, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models,
increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of ArcelorMittal in India: Sustainable Partnership Model
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in ArcelorMittal in India: Sustainable Partnership Model case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Chaudhri Erasmus, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Chaudhri Erasmus 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 ArcelorMittal in India: Sustainable Partnership Model can be done for the following purposes –
1. Strategic planning using facts provided in ArcelorMittal in India: Sustainable Partnership Model case study
2. Improving business portfolio management of Chaudhri Erasmus
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Chaudhri Erasmus
Strengths ArcelorMittal in India: Sustainable Partnership Model | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Chaudhri Erasmus in ArcelorMittal in India: Sustainable Partnership Model Harvard Business Review case study are -
Strong track record of project management
– Chaudhri Erasmus is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Strategy & Execution field
– Chaudhri Erasmus 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 Chaudhri Erasmus in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Chaudhri Erasmus 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 ArcelorMittal in India: Sustainable Partnership Model - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Chaudhri Erasmus in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Chaudhri Erasmus 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.
Successful track record of launching new products
– Chaudhri Erasmus has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Chaudhri Erasmus has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Learning organization
- Chaudhri Erasmus 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 Chaudhri Erasmus is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in ArcelorMittal in India: Sustainable Partnership Model Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Chaudhri Erasmus 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 ArcelorMittal in India: Sustainable Partnership Model HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Strategy & Execution industry
– ArcelorMittal in India: Sustainable Partnership Model firm has clearly differentiated products in the market place. This has enabled Chaudhri Erasmus to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Chaudhri Erasmus to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of Chaudhri Erasmus in the sector have low bargaining power. ArcelorMittal in India: Sustainable Partnership Model has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Chaudhri Erasmus to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Chaudhri Erasmus has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Chaudhri Erasmus to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Chaudhri Erasmus 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 Asha Kaul, Vidhi Chaudhri 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.
Weaknesses ArcelorMittal in India: Sustainable Partnership Model | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of ArcelorMittal in India: Sustainable Partnership Model are -
Products dominated business model
– Even though Chaudhri Erasmus 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 - ArcelorMittal in India: Sustainable Partnership Model should strive to include more intangible value offerings along with its core products and services.
Skills based hiring
– The stress on hiring functional specialists at Chaudhri Erasmus 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the ArcelorMittal in India: Sustainable Partnership Model 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 Chaudhri Erasmus has relatively successful track record of launching new products.
Lack of clear differentiation of Chaudhri Erasmus products
– To increase the profitability and margins on the products, Chaudhri Erasmus needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Chaudhri Erasmus 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.
Interest costs
– Compare to the competition, Chaudhri Erasmus has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow to strategic competitive environment developments
– As ArcelorMittal in India: Sustainable Partnership Model HBR case study mentions - Chaudhri Erasmus takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study ArcelorMittal in India: Sustainable Partnership Model, is just above the industry average. Chaudhri Erasmus 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study ArcelorMittal in India: Sustainable Partnership Model, it seems that the employees of Chaudhri Erasmus 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.
Low market penetration in new markets
– Outside its home market of Chaudhri Erasmus, firm in the HBR case study ArcelorMittal in India: Sustainable Partnership Model needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study ArcelorMittal in India: Sustainable Partnership Model 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 ArcelorMittal in India: Sustainable Partnership Model can leverage the sales team experience to cultivate customer relationships as Chaudhri Erasmus is planning to shift buying processes online.
Opportunities ArcelorMittal in India: Sustainable Partnership Model | 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 ArcelorMittal in India: Sustainable Partnership Model are -
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Chaudhri Erasmus 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. Chaudhri Erasmus 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Chaudhri Erasmus 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, ArcelorMittal in India: Sustainable Partnership Model, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Chaudhri Erasmus 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.
Creating value in data economy
– The success of analytics program of Chaudhri Erasmus has opened avenues for new revenue streams for the organization in the industry. This can help Chaudhri Erasmus to build a more holistic ecosystem as suggested in the ArcelorMittal in India: Sustainable Partnership Model case study. Chaudhri Erasmus can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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 Chaudhri Erasmus 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.
Leveraging digital technologies
– Chaudhri Erasmus 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Chaudhri Erasmus 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Chaudhri Erasmus in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Chaudhri Erasmus can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Chaudhri Erasmus 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 Strategy & Execution segment.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Chaudhri Erasmus 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 Chaudhri Erasmus to hire the very best people irrespective of their geographical location.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Chaudhri Erasmus can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Chaudhri Erasmus can develop new processes and procedures in Strategy & Execution 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 ArcelorMittal in India: Sustainable Partnership Model External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study ArcelorMittal in India: Sustainable Partnership Model are -
Technology acceleration in Forth Industrial Revolution
– Chaudhri Erasmus has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Chaudhri Erasmus needs to keep up with the evolution of technology in the Strategy & Execution 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.
High dependence on third party suppliers
– Chaudhri Erasmus 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.
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 Chaudhri Erasmus business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Chaudhri Erasmus is facing in Strategy & Execution 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 Chaudhri Erasmus.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study ArcelorMittal in India: Sustainable Partnership Model, Chaudhri Erasmus may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
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. Chaudhri Erasmus 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Chaudhri Erasmus 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 ArcelorMittal in India: Sustainable Partnership Model .
Regulatory challenges
– Chaudhri Erasmus 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 Strategy & Execution industry regulations.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Chaudhri Erasmus can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Chaudhri Erasmus needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Chaudhri Erasmus with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Chaudhri Erasmus in the Strategy & Execution industry. The Strategy & Execution 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.
Weighted SWOT Analysis of ArcelorMittal in India: Sustainable Partnership Model 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 ArcelorMittal in India: Sustainable Partnership Model 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 ArcelorMittal in India: Sustainable Partnership Model 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 ArcelorMittal in India: Sustainable Partnership Model 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 ArcelorMittal in India: Sustainable Partnership Model 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 Chaudhri Erasmus needs to make to build a sustainable competitive advantage.
