×




Otis Elevator Co.: China Joint Venture (D) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Otis Elevator Co.: China Joint Venture (D)


Describes a set of challenges facing Otis Elevator's joint venture in China as it seeks to expand to other regions of the country. A rewritten version of an earlier case.

Authors :: Michael Y. Yoshino

Topics :: Strategy & Execution

Tags :: Globalization, Growth strategy, Joint ventures, Negotiations, Strategy execution, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Otis Elevator Co.: China Joint Venture (D)" written by Michael Y. Yoshino includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Otis Elevator's facing as an external strategic factors. Some of the topics covered in Otis Elevator Co.: China Joint Venture (D) case study are - Strategic Management Strategies, Globalization, Growth strategy, Joint ventures, Negotiations, Strategy execution and Strategy & Execution.


Some of the macro environment factors that can be used to understand the Otis Elevator Co.: China Joint Venture (D) casestudy better are - – challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, there is backlash against globalization, central banks are concerned over increasing inflation, geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, etc



12 Hrs

$59.99
per Page
  • 100% Plagiarism Free
  • On Time Delivery | 27x7
  • PayPal Secure
  • 300 Words / Page
  • Buy Now

24 Hrs

$49.99
per Page
  • 100% Plagiarism Free
  • On Time Delivery | 27x7
  • PayPal Secure
  • 300 Words / Page
  • Buy Now

48 Hrs

$39.99
per Page
  • 100% Plagiarism Free
  • On Time Delivery | 27x7
  • PayPal Secure
  • 300 Words / Page
  • Buy Now







Introduction to SWOT Analysis of Otis Elevator Co.: China Joint Venture (D)


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Otis Elevator Co.: China Joint Venture (D) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Otis Elevator's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Otis Elevator's 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 Otis Elevator Co.: China Joint Venture (D) can be done for the following purposes –
1. Strategic planning using facts provided in Otis Elevator Co.: China Joint Venture (D) case study
2. Improving business portfolio management of Otis Elevator's
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 Otis Elevator's




Strengths Otis Elevator Co.: China Joint Venture (D) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Otis Elevator's in Otis Elevator Co.: China Joint Venture (D) Harvard Business Review case study are -

Ability to recruit top talent

– Otis Elevator's is one of the leading recruiters in the industry. Managers in the Otis Elevator Co.: China Joint Venture (D) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Cross disciplinary teams

– Horizontal connected teams at the Otis Elevator's 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.

Innovation driven organization

– Otis Elevator's is one of the most innovative firm in sector. Manager in Otis Elevator Co.: China Joint Venture (D) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Organizational Resilience of Otis Elevator's

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Otis Elevator's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Superior customer experience

– The customer experience strategy of Otis Elevator's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Low bargaining power of suppliers

– Suppliers of Otis Elevator's in the sector have low bargaining power. Otis Elevator Co.: China Joint Venture (D) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Otis Elevator's to manage not only supply disruptions but also source products at highly competitive prices.

Effective Research and Development (R&D)

– Otis Elevator's 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 Otis Elevator Co.: China Joint Venture (D) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Learning organization

- Otis Elevator's 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 Otis Elevator's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Otis Elevator Co.: China Joint Venture (D) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Ability to lead change in Strategy & Execution field

– Otis Elevator's 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 Otis Elevator's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Operational resilience

– The operational resilience strategy in the Otis Elevator Co.: China Joint Venture (D) 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.

High brand equity

– Otis Elevator's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Otis Elevator's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Analytics focus

– Otis Elevator's 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 Michael Y. Yoshino 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.



02468BRADFORD DEVELOPMENT - Confidential Information for the Mayor's Representative PARKER - GIBSON - Inventory/Satisfaction Questionnaire THE PARKING FACILITY VENTURE - General Instructions Tomasz Budziak Sierra Log Homes, Inc. (B5) Otis Elevator Co.: China Joint Venture (D)
Net Promoter Score



Weaknesses Otis Elevator Co.: China Joint Venture (D) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Otis Elevator Co.: China Joint Venture (D) are -

High operating costs

– Compare to the competitors, firm in the HBR case study Otis Elevator Co.: China Joint Venture (D) 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 Otis Elevator's 's lucrative customers.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Otis Elevator's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Otis Elevator Co.: China Joint Venture (D) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Otis Elevator Co.: China Joint Venture (D), in the dynamic environment Otis Elevator's has struggled to respond to the nimble upstart competition. Otis Elevator's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Otis Elevator Co.: China Joint Venture (D), it seems that the employees of Otis Elevator's 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.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Otis Elevator Co.: China Joint Venture (D) 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 Otis Elevator's has relatively successful track record of launching new products.

Capital Spending Reduction

– Even during the low interest decade, Otis Elevator's 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.

High cash cycle compare to competitors

Otis Elevator's 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.

Lack of clear differentiation of Otis Elevator's products

– To increase the profitability and margins on the products, Otis Elevator's needs to provide more differentiated products than what it is currently offering in the marketplace.

Products dominated business model

– Even though Otis Elevator's 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 - Otis Elevator Co.: China Joint Venture (D) 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 Otis Elevator's 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.

Aligning sales with marketing

– It come across in the case study Otis Elevator Co.: China Joint Venture (D) 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 Otis Elevator Co.: China Joint Venture (D) can leverage the sales team experience to cultivate customer relationships as Otis Elevator's is planning to shift buying processes online.




Opportunities Otis Elevator Co.: China Joint Venture (D) | 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 Otis Elevator Co.: China Joint Venture (D) are -

Lowering marketing communication costs

– 5G expansion will open new opportunities for Otis Elevator's 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.

Leveraging digital technologies

– Otis Elevator's 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.

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 Otis Elevator's 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.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Otis Elevator's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Low interest rates

– Even though inflation is raising its head in most developed economies, Otis Elevator's 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.

Creating value in data economy

– The success of analytics program of Otis Elevator's has opened avenues for new revenue streams for the organization in the industry. This can help Otis Elevator's to build a more holistic ecosystem as suggested in the Otis Elevator Co.: China Joint Venture (D) case study. Otis Elevator's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Manufacturing automation

– Otis Elevator's can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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 Otis Elevator's 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.

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 Otis Elevator's in the consumer business. Now Otis Elevator's can target international markets with far fewer capital restrictions requirements than the existing system.

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. Otis Elevator's can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Developing new processes and practices

– Otis Elevator's 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.

Using analytics as competitive advantage

– Otis Elevator's 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 Otis Elevator Co.: China Joint Venture (D) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Otis Elevator's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Buying journey improvements

– Otis Elevator's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Otis Elevator Co.: China Joint Venture (D) 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.




Threats Otis Elevator Co.: China Joint Venture (D) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study Otis Elevator Co.: China Joint Venture (D) are -

Environmental challenges

– Otis Elevator's 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. Otis Elevator's can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.

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. Otis Elevator's 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 Otis Elevator's is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Increasing wage structure of Otis Elevator's

– 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 Otis Elevator's.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Otis Elevator's 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 Otis Elevator Co.: China Joint Venture (D) .

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Otis Elevator Co.: China Joint Venture (D), Otis Elevator's 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 .

Regulatory challenges

– Otis Elevator's 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.

Technology acceleration in Forth Industrial Revolution

– Otis Elevator's has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Otis Elevator's 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.

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. Otis Elevator's will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.

Technology 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.

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. Otis Elevator's needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.

High dependence on third party suppliers

– Otis Elevator's 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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Otis Elevator's 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 Otis Elevator Co.: China Joint Venture (D) 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 Otis Elevator Co.: China Joint Venture (D) 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 Otis Elevator Co.: China Joint Venture (D) 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 Otis Elevator Co.: China Joint Venture (D) 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 Otis Elevator Co.: China Joint Venture (D) 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 Otis Elevator's needs to make to build a sustainable competitive advantage.



--- ---

Auditor Liability in Canada (A) SWOT Analysis / TOWS Matrix

Vaughan Radcliffe, Geoffrey Hewitt , Finance & Accounting


In-N-Out Burger SWOT Analysis / TOWS Matrix

Youngme Moon, Kerry Herman, Lucy Cummings, Sam Thakarar , Sales & Marketing


DonorsChoose.org: Refining a Successful Brand SWOT Analysis / TOWS Matrix

Allison Johnson, Emily Chen Bendle , Sales & Marketing


Central Parking Services Private Limited SWOT Analysis / TOWS Matrix

Abhishek Srivastav, Tanmay Gupta, Unnikrishnan Dinesh Kumar , Leadership & Managing People


George Martin at The Boston Consulting Group (A) SWOT Analysis / TOWS Matrix

Leslie A. Perlow, Kerry Herman , Organizational Development


Driving the Future: How Autonomous Vehicles Will Change Industries and Strategy SWOT Analysis / TOWS Matrix

W. Chan Kim, Renee Mauborgne, Guoli Chen, Michael Olenick , Strategy & Execution


Reckitt Benckiser: Fast and Focused Innovation SWOT Analysis / TOWS Matrix

Rebecca Henderson, Ryan Johnson , Strategy & Execution


BuildDirect: Constructing a Culture That Can Weather the Storms SWOT Analysis / TOWS Matrix

Robert I. Sutton, Hayagreeva Rao, Rebecca Hinds , Leadership & Managing People


Wal-Mart, 2005, Spanish Version SWOT Analysis / TOWS Matrix

David B. Yoffie, Barbara J. Mack , Strategy & Execution