Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership
The case describes the delivery of an urban public transportation project through a public private partnership (PPP). Delhi Metro Rail Corporation (DMRC) was a corporate body created by the Government of India and the Government of National Capital Territory of Delhi (NCT Delhi) for implementing a mass rapid transit system (MRTS) in Delhi. Dr. E. Sreedharan was appointed the managing director of the corporation. DMRC successfully completed phase-I of the MRTS in 2006. The government further mandated DMRC to implement phase-II of the MRTS project. The Japanese Bank of International Cooperation (JBIC) provided soft loans for both phases of the project, which were being implemented and commissioned through conventional engineering and procurement contracts (EPC). Meanwhile, the city of Delhi got the mandate to host the XIX Commonwealth Games 2010. As part of the preparations for these games, linking New Delhi Railway Station with Indira Gandhi International (IGI) Airport with a metro system - Airport Express Metro Link (AEML) - became necessary for easing the traffic congestion in the city. The time line available for the AEML project was less than three years. At the same time, JBIC financial help was not available for this project. Dr. Sreedharan was thus facing the challenges of project financing and its timely delivery. In the recent past in India, the public private partnership (PPP) model of infrastructure development had emerged as a dominant model due to its certain desirable characteristics. The case discusses various options available to DMRC for project financing and timely completion of the AEML project under PPP mode.
Swot Analysis of "Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership" written by Hukam Singh Chaudhary, Sushil Kumar, Vijay Aggarwal, Gita Bajaj includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Delhi Dmrc facing as an external strategic factors. Some of the topics covered in Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership case study are - Strategic Management Strategies, International business, Project management and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, supply chains are disrupted by pandemic ,
increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, etc
Introduction to SWOT Analysis of Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Delhi Dmrc, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Delhi Dmrc 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 Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership can be done for the following purposes –
1. Strategic planning using facts provided in Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership case study
2. Improving business portfolio management of Delhi Dmrc
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 Delhi Dmrc
Strengths Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Delhi Dmrc in Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Delhi Dmrc in the sector have low bargaining power. Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Delhi Dmrc to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Delhi Dmrc is one of the most innovative firm in sector. Manager in Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership 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 Delhi Dmrc
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Delhi Dmrc does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Highly skilled collaborators
– Delhi Dmrc 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 Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Delhi Dmrc has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Delhi Dmrc 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.
Analytics focus
– Delhi Dmrc 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 Hukam Singh Chaudhary, Sushil Kumar, Vijay Aggarwal, Gita Bajaj 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.
Operational resilience
– The operational resilience strategy in the Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership 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.
Learning organization
- Delhi Dmrc 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 Delhi Dmrc is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Delhi Dmrc 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 Delhi Dmrc 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
– Delhi Dmrc is present in almost all the verticals within the industry. This has provided firm in Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership 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.
High brand equity
– Delhi Dmrc has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Delhi Dmrc to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership, in the dynamic environment Delhi Dmrc has struggled to respond to the nimble upstart competition. Delhi Dmrc has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High cash cycle compare to competitors
Delhi Dmrc 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership 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 Delhi Dmrc 's lucrative customers.
Low market penetration in new markets
– Outside its home market of Delhi Dmrc, firm in the HBR case study Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
No frontier risks strategy
– After analyzing the HBR case study Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership, it seems that company is thinking about the frontier risks that can impact Strategy & Execution 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 bargaining power of channel partners
– Because of the regulatory requirements, Hukam Singh Chaudhary, Sushil Kumar, Vijay Aggarwal, Gita Bajaj suggests that, Delhi Dmrc is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Interest costs
– Compare to the competition, Delhi Dmrc 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.
Products dominated business model
– Even though Delhi Dmrc 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 - Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership should strive to include more intangible value offerings along with its core products and services.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership 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 Delhi Dmrc has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership, is just above the industry average. Delhi Dmrc 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.
Increasing silos among functional specialists
– The organizational structure of Delhi Dmrc is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Delhi Dmrc needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Delhi Dmrc to focus more on services rather than just following the product oriented approach.
Opportunities Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership | 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 Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership are -
Developing new processes and practices
– Delhi Dmrc 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.
Creating value in data economy
– The success of analytics program of Delhi Dmrc has opened avenues for new revenue streams for the organization in the industry. This can help Delhi Dmrc to build a more holistic ecosystem as suggested in the Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership case study. Delhi Dmrc can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Delhi Dmrc 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, Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership, 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 Delhi Dmrc 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.
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 Delhi Dmrc in the consumer business. Now Delhi Dmrc can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Delhi Dmrc 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Delhi Dmrc 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.
Using analytics as competitive advantage
– Delhi Dmrc 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 Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Delhi Dmrc to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Delhi Dmrc 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.
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. Delhi Dmrc can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Delhi Dmrc 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 Delhi Dmrc to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Delhi Dmrc can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Delhi Dmrc is facing challenges because of the dominance of functional experts in the organization. Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership 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 Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Delhi Dmrc 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 Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership .
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. Delhi Dmrc needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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.
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 Delhi Dmrc.
High dependence on third party suppliers
– Delhi Dmrc 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.
Consumer confidence and its impact on Delhi Dmrc 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.
Shortening product life cycle
– it is one of the major threat that Delhi Dmrc 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 Delhi Dmrc
– 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 Delhi Dmrc.
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.
Environmental challenges
– Delhi Dmrc 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. Delhi Dmrc 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. Delhi Dmrc can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Delhi Dmrc 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Delhi Dmrc with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership 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 Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership 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 Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership 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 Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership 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 Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership 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 Delhi Dmrc needs to make to build a sustainable competitive advantage.
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