Prince Pipes and Fittings Pvt. Ltd., India SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
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Case Study SWOT Analysis Solution
Case Study Description of Prince Pipes and Fittings Pvt. Ltd., India
Prince Pipes and Fittings (Prince) - a family managed enterprise in the Indian PVC pipe industry - had not only navigated the 2008 Global financial crisis, a period when more than 1000 Indian pipe companies had shut down within 90 days, it had in fact used the crisis as an opportunity to successfully transition from an small and medium enterprise (SME) to a large enterprise through acquisitions. In 2013, the company faced a bleak macroeconomic environment of declining GDP growth rates, tight monetary conditions, a pessimistic industrial outlook, a depreciating rupee and rising crude prices. It also faced growing domestic competition. Would Prince be able to reach its goals for 2013/14? Tulsi Jayakumar is affiliated with SP Jain Institute of Management & Research.
Swot Analysis of "Prince Pipes and Fittings Pvt. Ltd., India" written by Tulsi Jayakumar includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Prince Fittings facing as an external strategic factors. Some of the topics covered in Prince Pipes and Fittings Pvt. Ltd., India case study are - Strategic Management Strategies, Recession and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Prince Pipes and Fittings Pvt. Ltd., India casestudy better are - – central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, technology disruption, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies,
increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Prince Pipes and Fittings Pvt. Ltd., India
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Prince Pipes and Fittings Pvt. Ltd., India case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Prince Fittings, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Prince Fittings 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 Prince Pipes and Fittings Pvt. Ltd., India can be done for the following purposes –
1. Strategic planning using facts provided in Prince Pipes and Fittings Pvt. Ltd., India case study
2. Improving business portfolio management of Prince Fittings
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 Prince Fittings
Strengths Prince Pipes and Fittings Pvt. Ltd., India | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Prince Fittings in Prince Pipes and Fittings Pvt. Ltd., India Harvard Business Review case study are -
Ability to recruit top talent
– Prince Fittings is one of the leading recruiters in the industry. Managers in the Prince Pipes and Fittings Pvt. Ltd., India are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Strategy & Execution field
– Prince Fittings 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 Prince Fittings in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Prince Fittings in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Prince Fittings is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Prince Fittings
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Prince Fittings does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Prince Fittings 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.
Highly skilled collaborators
– Prince Fittings 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 Prince Pipes and Fittings Pvt. Ltd., India HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Prince Fittings has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Prince Fittings to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Prince Fittings 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 Prince Fittings is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Prince Pipes and Fittings Pvt. Ltd., India Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Strategy & Execution industry
– Prince Pipes and Fittings Pvt. Ltd., India firm has clearly differentiated products in the market place. This has enabled Prince Fittings to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Prince Fittings to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Prince Fittings 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.
Effective Research and Development (R&D)
– Prince Fittings 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 Prince Pipes and Fittings Pvt. Ltd., India - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Prince Pipes and Fittings Pvt. Ltd., India | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Prince Pipes and Fittings Pvt. Ltd., India are -
Capital Spending Reduction
– Even during the low interest decade, Prince Fittings 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.
Lack of clear differentiation of Prince Fittings products
– To increase the profitability and margins on the products, Prince Fittings needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Prince Fittings is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Prince Pipes and Fittings Pvt. Ltd., India can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Increasing silos among functional specialists
– The organizational structure of Prince Fittings is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Prince Fittings needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Prince Fittings to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Prince Fittings 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.
Low market penetration in new markets
– Outside its home market of Prince Fittings, firm in the HBR case study Prince Pipes and Fittings Pvt. Ltd., India needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Prince Pipes and Fittings Pvt. Ltd., India, it seems that the employees of Prince Fittings 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.
Need for greater diversity
– Prince Fittings has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Interest costs
– Compare to the competition, Prince Fittings 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Prince Pipes and Fittings Pvt. Ltd., India, in the dynamic environment Prince Fittings has struggled to respond to the nimble upstart competition. Prince Fittings has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Prince Pipes and Fittings Pvt. Ltd., India, is just above the industry average. Prince Fittings 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.
Opportunities Prince Pipes and Fittings Pvt. Ltd., India | 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 Prince Pipes and Fittings Pvt. Ltd., India are -
Developing new processes and practices
– Prince Fittings 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
– Prince Fittings 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 Prince Pipes and Fittings Pvt. Ltd., India - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Prince Fittings to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Prince Fittings can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Prince Fittings can use these opportunities to build new business models that can help the communities that Prince Fittings operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Prince Fittings 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.
Learning at scale
– Online learning technologies has now opened space for Prince Fittings 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.
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. Prince Fittings 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. Prince Fittings 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.
Building a culture of innovation
– managers at Prince Fittings 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.
Loyalty marketing
– Prince Fittings 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Prince Fittings is facing challenges because of the dominance of functional experts in the organization. Prince Pipes and Fittings Pvt. Ltd., India 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.
Creating value in data economy
– The success of analytics program of Prince Fittings has opened avenues for new revenue streams for the organization in the industry. This can help Prince Fittings to build a more holistic ecosystem as suggested in the Prince Pipes and Fittings Pvt. Ltd., India case study. Prince Fittings can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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. Prince Fittings can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Prince Fittings in the consumer business. Now Prince Fittings can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Prince Pipes and Fittings Pvt. Ltd., India External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Prince Pipes and Fittings Pvt. Ltd., India are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Prince Pipes and Fittings Pvt. Ltd., India, Prince Fittings 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 .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Prince Fittings 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 Prince Pipes and Fittings Pvt. Ltd., India .
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. Prince Fittings 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.
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 Prince Fittings.
Environmental challenges
– Prince Fittings 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. Prince Fittings can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Technology acceleration in Forth Industrial Revolution
– Prince Fittings has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Prince Fittings 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.
Regulatory challenges
– Prince Fittings 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.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Prince Fittings in the Strategy & Execution sector and impact the bottomline of the organization.
Consumer confidence and its impact on Prince Fittings 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.
Increasing wage structure of Prince Fittings
– 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 Prince Fittings.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Prince Fittings 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.
Stagnating economy with rate increase
– Prince Fittings can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
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.
Weighted SWOT Analysis of Prince Pipes and Fittings Pvt. Ltd., India 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 Prince Pipes and Fittings Pvt. Ltd., India 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 Prince Pipes and Fittings Pvt. Ltd., India 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 Prince Pipes and Fittings Pvt. Ltd., India 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 Prince Pipes and Fittings Pvt. Ltd., India 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 Prince Fittings needs to make to build a sustainable competitive advantage.
