Emerging Markets: Look Before You Leap SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Emerging Markets: Look Before You Leap
Think "emerging markets," and most people think BRICs. The problem with this approach is that it is too simplistic and tends to treat emerging markets as one homogeneous whole, when the exact opposite is true. Instead of asking, "What's my emerging market strategy for Brazil, Russia, India or China?" companies should ask themselves, "In which ways is this particular market emerging?" Viewed this way, the answer may surprise them. The authors synthesize a decade of their research to clear up the confusion that abounds as to whether a market is or isn't emerging. They first explain which institutional mechanisms need to be in place for the healthy functioning of any market, so managers will be able to recognize when these vital mechanisms are absent or deficient. Asking a series of key questions will help managers spot voids, making them better equipped not only to tackle the challenges but to leverage emerging opportunities in all their guises -- whether in the countries that attract the most attention, or in the United States and Western Europe, which may still be "emerging" in some ways.
Swot Analysis of "Emerging Markets: Look Before You Leap" written by Tarun Khanna, Krishna G. Palepu includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Emerging Mechanisms facing as an external strategic factors. Some of the topics covered in Emerging Markets: Look Before You Leap case study are - Strategic Management Strategies, Labor, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Emerging Markets: Look Before You Leap casestudy better are - – talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, wage bills are increasing, banking and financial system is disrupted by Bitcoin and other crypto currencies,
digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, etc
Introduction to SWOT Analysis of Emerging Markets: Look Before You Leap
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Emerging Markets: Look Before You Leap case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Emerging Mechanisms, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Emerging Mechanisms 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 Emerging Markets: Look Before You Leap can be done for the following purposes –
1. Strategic planning using facts provided in Emerging Markets: Look Before You Leap case study
2. Improving business portfolio management of Emerging Mechanisms
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 Emerging Mechanisms
Strengths Emerging Markets: Look Before You Leap | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Emerging Mechanisms in Emerging Markets: Look Before You Leap Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Emerging Mechanisms in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Emerging Mechanisms
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Emerging Mechanisms 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 Emerging Mechanisms in the sector have low bargaining power. Emerging Markets: Look Before You Leap has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Emerging Mechanisms to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Strategy & Execution field
– Emerging Mechanisms 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 Emerging Mechanisms in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Emerging Mechanisms 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 Emerging Mechanisms is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Emerging Markets: Look Before You Leap Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Emerging Mechanisms 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 Emerging Markets: Look Before You Leap - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Emerging Mechanisms 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 Emerging Markets: Look Before You Leap HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Emerging Mechanisms has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Emerging Mechanisms to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Emerging Mechanisms has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Emerging Mechanisms 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Emerging Markets: Look Before You Leap firm has clearly differentiated products in the market place. This has enabled Emerging Mechanisms to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Emerging Mechanisms to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Emerging Mechanisms is one of the leading recruiters in the industry. Managers in the Emerging Markets: Look Before You Leap 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 Emerging Mechanisms 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.
Weaknesses Emerging Markets: Look Before You Leap | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Emerging Markets: Look Before You Leap are -
Interest costs
– Compare to the competition, Emerging Mechanisms 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.
Aligning sales with marketing
– It come across in the case study Emerging Markets: Look Before You Leap 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 Emerging Markets: Look Before You Leap can leverage the sales team experience to cultivate customer relationships as Emerging Mechanisms is planning to shift buying processes online.
Products dominated business model
– Even though Emerging Mechanisms 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 - Emerging Markets: Look Before You Leap 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 Emerging Markets: Look Before You Leap 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 Emerging Mechanisms has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Emerging Mechanisms, firm in the HBR case study Emerging Markets: Look Before You Leap needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Emerging Mechanisms 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 bargaining power of channel partners
– Because of the regulatory requirements, Tarun Khanna, Krishna G. Palepu suggests that, Emerging Mechanisms 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Emerging Markets: Look Before You Leap 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 Emerging Mechanisms 's lucrative customers.
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 Emerging Mechanisms supply chain. Even after few cautionary changes mentioned in the HBR case study - Emerging Markets: Look Before You Leap, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Emerging Mechanisms vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Emerging Mechanisms has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Emerging Mechanisms even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Emerging Mechanisms is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Emerging Markets: Look Before You Leap can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Emerging Markets: Look Before You Leap | 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 Emerging Markets: Look Before You Leap are -
Developing new processes and practices
– Emerging Mechanisms 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Emerging Mechanisms can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Emerging Mechanisms 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 Emerging Mechanisms to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Emerging Mechanisms is facing challenges because of the dominance of functional experts in the organization. Emerging Markets: Look Before You Leap 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.
Better consumer reach
– The expansion of the 5G network will help Emerging Mechanisms to increase its market reach. Emerging Mechanisms 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Emerging Mechanisms 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
– Emerging Mechanisms 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 Emerging Markets: Look Before You Leap - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Emerging Mechanisms to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 Emerging Mechanisms in the consumer business. Now Emerging Mechanisms can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Emerging Mechanisms 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, Emerging Markets: Look Before You Leap, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Emerging Mechanisms 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.
Leveraging digital technologies
– Emerging Mechanisms 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.
Creating value in data economy
– The success of analytics program of Emerging Mechanisms has opened avenues for new revenue streams for the organization in the industry. This can help Emerging Mechanisms to build a more holistic ecosystem as suggested in the Emerging Markets: Look Before You Leap case study. Emerging Mechanisms can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Emerging Mechanisms can use these opportunities to build new business models that can help the communities that Emerging Mechanisms operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Threats Emerging Markets: Look Before You Leap External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Emerging Markets: Look Before You Leap 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. Emerging Mechanisms needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Emerging Mechanisms is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Emerging Mechanisms business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Emerging Mechanisms
– 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 Emerging Mechanisms.
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. Emerging Mechanisms can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Emerging Markets: Look Before You Leap, Emerging Mechanisms 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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Emerging Mechanisms with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Emerging Mechanisms 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.
Regulatory challenges
– Emerging Mechanisms 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.
Environmental challenges
– Emerging Mechanisms 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. Emerging Mechanisms can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Emerging Mechanisms 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.
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.
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.
Weighted SWOT Analysis of Emerging Markets: Look Before You Leap 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 Emerging Markets: Look Before You Leap 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 Emerging Markets: Look Before You Leap 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 Emerging Markets: Look Before You Leap 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 Emerging Markets: Look Before You Leap 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 Emerging Mechanisms needs to make to build a sustainable competitive advantage.
