Tanishq: Positioning to Capture the Indian Woman's Heart SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Tanishq: Positioning to Capture the Indian Woman's Heart
This case is accompanied by a Video Short that can be shown in class or included in a digital coursepack. Instructors should consider the timing of making the video available to students, as it may reveal key case details.The firm has to choose between an established brand, Tanishq, and a new skunkworks brand, GoldPlus, to go after the Indian plain gold jewelry market: Tanishq, initially targeted at a western customer, has undergone strategic retooling and has currently been repositioned to serve the "traditional yet modern" Indian woman. The brand still carries some baggage from its past. GoldPlus, on the other hand, is a new brand that is positioned to serve the plain gold wedding jewelry market. A variety of strategic, economic, organizational and brand investment reasons make the decision an important one.
Swot Analysis of "Tanishq: Positioning to Capture the Indian Woman's Heart" written by Das Narayandas, Kerry Herman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tanishq Goldplus facing as an external strategic factors. Some of the topics covered in Tanishq: Positioning to Capture the Indian Woman's Heart case study are - Strategic Management Strategies, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Tanishq: Positioning to Capture the Indian Woman's Heart casestudy better are - – there is increasing trade war between United States & China, central banks are concerned over increasing inflation, increasing energy prices, geopolitical disruptions, talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%,
competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Tanishq: Positioning to Capture the Indian Woman's Heart
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Tanishq: Positioning to Capture the Indian Woman's Heart case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tanishq Goldplus, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tanishq Goldplus 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 Tanishq: Positioning to Capture the Indian Woman's Heart can be done for the following purposes –
1. Strategic planning using facts provided in Tanishq: Positioning to Capture the Indian Woman's Heart case study
2. Improving business portfolio management of Tanishq Goldplus
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 Tanishq Goldplus
Strengths Tanishq: Positioning to Capture the Indian Woman's Heart | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tanishq Goldplus in Tanishq: Positioning to Capture the Indian Woman's Heart Harvard Business Review case study are -
Effective Research and Development (R&D)
– Tanishq Goldplus 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 Tanishq: Positioning to Capture the Indian Woman's Heart - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Tanishq Goldplus is one of the leading recruiters in the industry. Managers in the Tanishq: Positioning to Capture the Indian Woman's Heart are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Tanishq Goldplus has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Tanishq Goldplus 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.
Diverse revenue streams
– Tanishq Goldplus is present in almost all the verticals within the industry. This has provided firm in Tanishq: Positioning to Capture the Indian Woman's Heart 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.
Operational resilience
– The operational resilience strategy in the Tanishq: Positioning to Capture the Indian Woman's Heart 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.
Analytics focus
– Tanishq Goldplus 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 Das Narayandas, Kerry Herman 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.
Ability to lead change in Strategy & Execution field
– Tanishq Goldplus 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 Tanishq Goldplus in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Tanishq Goldplus in the sector have low bargaining power. Tanishq: Positioning to Capture the Indian Woman's Heart has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Tanishq Goldplus to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Tanishq Goldplus 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Tanishq: Positioning to Capture the Indian Woman's Heart firm has clearly differentiated products in the market place. This has enabled Tanishq Goldplus to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Tanishq Goldplus to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Tanishq Goldplus 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 Tanishq Goldplus 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.
Weaknesses Tanishq: Positioning to Capture the Indian Woman's Heart | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Tanishq: Positioning to Capture the Indian Woman's Heart are -
High bargaining power of channel partners
– Because of the regulatory requirements, Das Narayandas, Kerry Herman suggests that, Tanishq Goldplus 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.
Skills based hiring
– The stress on hiring functional specialists at Tanishq Goldplus has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High dependence on 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 Tanishq Goldplus supply chain. Even after few cautionary changes mentioned in the HBR case study - Tanishq: Positioning to Capture the Indian Woman's Heart, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Tanishq Goldplus vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– After analyzing the HBR case study Tanishq: Positioning to Capture the Indian Woman's Heart, 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 operating costs
– Compare to the competitors, firm in the HBR case study Tanishq: Positioning to Capture the Indian Woman's Heart 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 Tanishq Goldplus 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Tanishq Goldplus 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.
Products dominated business model
– Even though Tanishq Goldplus 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 - Tanishq: Positioning to Capture the Indian Woman's Heart should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Tanishq: Positioning to Capture the Indian Woman's Heart HBR case study mentions - Tanishq Goldplus takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Aligning sales with marketing
– It come across in the case study Tanishq: Positioning to Capture the Indian Woman's Heart 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 Tanishq: Positioning to Capture the Indian Woman's Heart can leverage the sales team experience to cultivate customer relationships as Tanishq Goldplus is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Tanishq: Positioning to Capture the Indian Woman's Heart, is just above the industry average. Tanishq Goldplus 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.
Lack of clear differentiation of Tanishq Goldplus products
– To increase the profitability and margins on the products, Tanishq Goldplus needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Tanishq: Positioning to Capture the Indian Woman's Heart | 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 Tanishq: Positioning to Capture the Indian Woman's Heart are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Tanishq Goldplus 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.
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. Tanishq Goldplus can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Tanishq Goldplus is facing challenges because of the dominance of functional experts in the organization. Tanishq: Positioning to Capture the Indian Woman's Heart 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Tanishq Goldplus 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 Tanishq Goldplus to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Tanishq Goldplus 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.
Using analytics as competitive advantage
– Tanishq Goldplus 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 Tanishq: Positioning to Capture the Indian Woman's Heart - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Tanishq Goldplus to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Tanishq Goldplus has opened avenues for new revenue streams for the organization in the industry. This can help Tanishq Goldplus to build a more holistic ecosystem as suggested in the Tanishq: Positioning to Capture the Indian Woman's Heart case study. Tanishq Goldplus 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, Tanishq Goldplus can use these opportunities to build new business models that can help the communities that Tanishq Goldplus operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Leveraging digital technologies
– Tanishq Goldplus 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.
Learning at scale
– Online learning technologies has now opened space for Tanishq Goldplus 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.
Better consumer reach
– The expansion of the 5G network will help Tanishq Goldplus to increase its market reach. Tanishq Goldplus 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.
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 Tanishq Goldplus in the consumer business. Now Tanishq Goldplus can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Tanishq Goldplus 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.
Threats Tanishq: Positioning to Capture the Indian Woman's Heart External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Tanishq: Positioning to Capture the Indian Woman's Heart are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Tanishq Goldplus with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Tanishq Goldplus.
Regulatory challenges
– Tanishq Goldplus 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Tanishq Goldplus 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.
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 Tanishq Goldplus in the Strategy & Execution sector and impact the bottomline of the organization.
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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Tanishq Goldplus 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 Tanishq: Positioning to Capture the Indian Woman's Heart .
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. Tanishq Goldplus 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 Tanishq Goldplus is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Tanishq Goldplus 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.
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. Tanishq Goldplus 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 acceleration in Forth Industrial Revolution
– Tanishq Goldplus has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Tanishq Goldplus 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.
Consumer confidence and its impact on Tanishq Goldplus 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.
Weighted SWOT Analysis of Tanishq: Positioning to Capture the Indian Woman's Heart 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 Tanishq: Positioning to Capture the Indian Woman's Heart 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 Tanishq: Positioning to Capture the Indian Woman's Heart 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 Tanishq: Positioning to Capture the Indian Woman's Heart 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 Tanishq: Positioning to Capture the Indian Woman's Heart 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 Tanishq Goldplus needs to make to build a sustainable competitive advantage.
