Agarwal Packers and Movers: Competing for "Moving" Experiences SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Agarwal Packers and Movers: Competing for "Moving" Experiences
In December 2014, the chairman of Agarwal Packers and Movers Limited (APML) prepared for a meeting with his senior management team. APML was a family-managed business and the largest branded player in the fragmented and largely unorganized house-movers segment of the Indian logistics industry. The company was taking advantage of the Indian economy's growth, government infrastructure spending, and goods and services tax changes that would bring beneficial changes to the industry. While the company had achieved sales of US$62.6 million in 2013/14 and had been lauded for its safety practices and achievements, the industry had low barriers to entry. APML was faced with several large, and numerous small, moving companies that were fighting for business. Moreover, many small companies fraudulently co-opted the company's name to steal customers. APML's chief financial officer had put forth a proposal to increase prices for inter-city relocations. The chairman had to consider the proper price strategy to employ, because any price increase could cost the company customers. Tulsi Jayakumar is affiliated with SP Jain Institute of Management & Research.
Swot Analysis of "Agarwal Packers and Movers: Competing for "Moving" Experiences" written by Tulsi Jayakumar includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Apml Movers facing as an external strategic factors. Some of the topics covered in Agarwal Packers and Movers: Competing for "Moving" Experiences case study are - Strategic Management Strategies, Pricing and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Agarwal Packers and Movers: Competing for "Moving" Experiences casestudy better are - – wage bills are increasing, increasing government debt because of Covid-19 spendings, technology disruption, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies,
increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Agarwal Packers and Movers: Competing for "Moving" Experiences
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Agarwal Packers and Movers: Competing for "Moving" Experiences case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Apml Movers, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Apml Movers 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 Agarwal Packers and Movers: Competing for "Moving" Experiences can be done for the following purposes –
1. Strategic planning using facts provided in Agarwal Packers and Movers: Competing for "Moving" Experiences case study
2. Improving business portfolio management of Apml Movers
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 Apml Movers
Strengths Agarwal Packers and Movers: Competing for "Moving" Experiences | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Apml Movers in Agarwal Packers and Movers: Competing for "Moving" Experiences Harvard Business Review case study are -
Sustainable margins compare to other players in Strategy & Execution industry
– Agarwal Packers and Movers: Competing for "Moving" Experiences firm has clearly differentiated products in the market place. This has enabled Apml Movers to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Apml Movers to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Apml Movers 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
– Apml Movers is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Apml Movers has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Apml Movers to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Diverse revenue streams
– Apml Movers is present in almost all the verticals within the industry. This has provided firm in Agarwal Packers and Movers: Competing for "Moving" Experiences 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.
Ability to recruit top talent
– Apml Movers is one of the leading recruiters in the industry. Managers in the Agarwal Packers and Movers: Competing for "Moving" Experiences are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Apml Movers digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Apml Movers has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Successful track record of launching new products
– Apml Movers has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Apml Movers 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.
Learning organization
- Apml Movers 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 Apml Movers is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Agarwal Packers and Movers: Competing for "Moving" Experiences Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Apml Movers 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.
High switching costs
– The high switching costs that Apml Movers 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.
Highly skilled collaborators
– Apml Movers 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 Agarwal Packers and Movers: Competing for "Moving" Experiences HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Agarwal Packers and Movers: Competing for "Moving" Experiences | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Agarwal Packers and Movers: Competing for "Moving" Experiences are -
Products dominated business model
– Even though Apml Movers 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 - Agarwal Packers and Movers: Competing for "Moving" Experiences should strive to include more intangible value offerings along with its core products and services.
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 Apml Movers supply chain. Even after few cautionary changes mentioned in the HBR case study - Agarwal Packers and Movers: Competing for "Moving" Experiences, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Apml Movers vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Apml Movers is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Apml Movers needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Apml Movers to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Tulsi Jayakumar suggests that, Apml Movers 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.
Need for greater diversity
– Apml Movers 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.
No frontier risks strategy
– After analyzing the HBR case study Agarwal Packers and Movers: Competing for "Moving" Experiences, 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 Agarwal Packers and Movers: Competing for "Moving" Experiences 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 Apml Movers 's lucrative customers.
Interest costs
– Compare to the competition, Apml Movers 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 Agarwal Packers and Movers: Competing for "Moving" Experiences 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 Agarwal Packers and Movers: Competing for "Moving" Experiences can leverage the sales team experience to cultivate customer relationships as Apml Movers is planning to shift buying processes online.
High cash cycle compare to competitors
Apml Movers 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Agarwal Packers and Movers: Competing for "Moving" Experiences 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 Apml Movers has relatively successful track record of launching new products.
Opportunities Agarwal Packers and Movers: Competing for "Moving" Experiences | 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 Agarwal Packers and Movers: Competing for "Moving" Experiences are -
Buying journey improvements
– Apml Movers can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Agarwal Packers and Movers: Competing for "Moving" Experiences 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.
Better consumer reach
– The expansion of the 5G network will help Apml Movers to increase its market reach. Apml Movers 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.
Loyalty marketing
– Apml Movers 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Apml Movers can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Apml Movers in the consumer business. Now Apml Movers can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Apml Movers 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Apml Movers 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 Apml Movers to hire the very best people irrespective of their geographical location.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Apml Movers can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Apml Movers to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Apml Movers can use these opportunities to build new business models that can help the communities that Apml Movers operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Manufacturing automation
– Apml Movers 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Apml Movers 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, Agarwal Packers and Movers: Competing for "Moving" Experiences, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Apml Movers 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.
Threats Agarwal Packers and Movers: Competing for "Moving" Experiences External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Agarwal Packers and Movers: Competing for "Moving" Experiences are -
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. Apml Movers can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Apml Movers needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Apml Movers has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Apml Movers 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
– Apml Movers needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Technology 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.
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 Apml Movers.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Agarwal Packers and Movers: Competing for "Moving" Experiences, Apml Movers 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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Apml Movers 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.
High dependence on third party suppliers
– Apml Movers 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 Apml Movers 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.
Environmental challenges
– Apml Movers 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. Apml Movers can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Stagnating economy with rate increase
– Apml Movers 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Apml Movers 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 Agarwal Packers and Movers: Competing for "Moving" Experiences .
Weighted SWOT Analysis of Agarwal Packers and Movers: Competing for "Moving" Experiences 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 Agarwal Packers and Movers: Competing for "Moving" Experiences 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 Agarwal Packers and Movers: Competing for "Moving" Experiences 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 Agarwal Packers and Movers: Competing for "Moving" Experiences 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 Agarwal Packers and Movers: Competing for "Moving" Experiences 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 Apml Movers needs to make to build a sustainable competitive advantage.
