Telecommunications Regulation and Coordinated Competition in Romania SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Telecommunications Regulation and Coordinated Competition in Romania
Leaders of the Romanian telecommunications agency must decide about a proposed international merger and how to structure bandwidth auctions critical to the telecoms market. The case is designed to teach about regulatory choices from the perspective of a regulatory agency, but it also describes the competitive standing of domestic and international telecoms providers in Romania and the challenges of operating as a "foreign" multinational, even in the European Union where protection of national champions is supposedly obsolete. Policy tradeoffs are developed among approving, delaying, or denying the proposed merger of domestic Romtelecom with Greek-based Cosmote. Likewise, tradeoffs are described for bandwidth auctions, notably among public transparency, maximizing revenue, preventing collusion, promoting efficient use of spectrum, broadening coverage, and fostering innovation in products and services.
Authors :: Arthur A. Daemmrich, Alex Radu, Ana Sarbu
Swot Analysis of "Telecommunications Regulation and Coordinated Competition in Romania" written by Arthur A. Daemmrich, Alex Radu, Ana Sarbu includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Romania Bandwidth facing as an external strategic factors. Some of the topics covered in Telecommunications Regulation and Coordinated Competition in Romania case study are - Strategic Management Strategies, Corporate governance, International business, Mergers & acquisitions, Negotiations, Policy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Telecommunications Regulation and Coordinated Competition in Romania casestudy better are - – technology disruption, increasing government debt because of Covid-19 spendings, there is backlash against globalization, supply chains are disrupted by pandemic , wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies,
increasing energy prices, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of Telecommunications Regulation and Coordinated Competition in Romania
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Telecommunications Regulation and Coordinated Competition in Romania case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Romania Bandwidth, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Romania Bandwidth 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 Telecommunications Regulation and Coordinated Competition in Romania can be done for the following purposes –
1. Strategic planning using facts provided in Telecommunications Regulation and Coordinated Competition in Romania case study
2. Improving business portfolio management of Romania Bandwidth
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 Romania Bandwidth
Strengths Telecommunications Regulation and Coordinated Competition in Romania | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Romania Bandwidth in Telecommunications Regulation and Coordinated Competition in Romania Harvard Business Review case study are -
Learning organization
- Romania Bandwidth 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 Romania Bandwidth is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Telecommunications Regulation and Coordinated Competition in Romania Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Romania Bandwidth 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.
Diverse revenue streams
– Romania Bandwidth is present in almost all the verticals within the industry. This has provided firm in Telecommunications Regulation and Coordinated Competition in Romania 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.
Low bargaining power of suppliers
– Suppliers of Romania Bandwidth in the sector have low bargaining power. Telecommunications Regulation and Coordinated Competition in Romania has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Romania Bandwidth to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Romania Bandwidth has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Telecommunications Regulation and Coordinated Competition in Romania Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
High brand equity
– Romania Bandwidth has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Romania Bandwidth to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Romania Bandwidth digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Romania Bandwidth 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.
Effective Research and Development (R&D)
– Romania Bandwidth 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 Telecommunications Regulation and Coordinated Competition in Romania - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Strategy & Execution industry
– Telecommunications Regulation and Coordinated Competition in Romania firm has clearly differentiated products in the market place. This has enabled Romania Bandwidth to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Romania Bandwidth to invest into research and development (R&D) and innovation.
Analytics focus
– Romania Bandwidth 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 Arthur A. Daemmrich, Alex Radu, Ana Sarbu 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.
Strong track record of project management
– Romania Bandwidth is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Romania Bandwidth is one of the most innovative firm in sector. Manager in Telecommunications Regulation and Coordinated Competition in Romania Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Telecommunications Regulation and Coordinated Competition in Romania | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Telecommunications Regulation and Coordinated Competition in Romania are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Romania Bandwidth is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Telecommunications Regulation and Coordinated Competition in Romania 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 Romania Bandwidth is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Romania Bandwidth needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Romania Bandwidth to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Romania Bandwidth 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.
Need for greater diversity
– Romania Bandwidth 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Telecommunications Regulation and Coordinated Competition in Romania, it seems that the employees of Romania Bandwidth 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.
Slow decision making process
– As mentioned earlier in the report, Romania Bandwidth 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. Romania Bandwidth 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Telecommunications Regulation and Coordinated Competition in Romania 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 Romania Bandwidth 's lucrative customers.
Interest costs
– Compare to the competition, Romania Bandwidth 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.
Slow to strategic competitive environment developments
– As Telecommunications Regulation and Coordinated Competition in Romania HBR case study mentions - Romania Bandwidth 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.
Lack of clear differentiation of Romania Bandwidth products
– To increase the profitability and margins on the products, Romania Bandwidth needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Romania Bandwidth 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.
Opportunities Telecommunications Regulation and Coordinated Competition in Romania | 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 Telecommunications Regulation and Coordinated Competition in Romania are -
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. Romania Bandwidth can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Romania Bandwidth can use these opportunities to build new business models that can help the communities that Romania Bandwidth operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Leveraging digital technologies
– Romania Bandwidth 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.
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. Romania Bandwidth 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. Romania Bandwidth 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.
Creating value in data economy
– The success of analytics program of Romania Bandwidth has opened avenues for new revenue streams for the organization in the industry. This can help Romania Bandwidth to build a more holistic ecosystem as suggested in the Telecommunications Regulation and Coordinated Competition in Romania case study. Romania Bandwidth can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Romania Bandwidth in the consumer business. Now Romania Bandwidth can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Romania Bandwidth 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.
Developing new processes and practices
– Romania Bandwidth 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.
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 Romania Bandwidth 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Romania Bandwidth is facing challenges because of the dominance of functional experts in the organization. Telecommunications Regulation and Coordinated Competition in Romania 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.
Learning at scale
– Online learning technologies has now opened space for Romania Bandwidth 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 Romania Bandwidth to increase its market reach. Romania Bandwidth 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Romania Bandwidth 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, Telecommunications Regulation and Coordinated Competition in Romania, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Telecommunications Regulation and Coordinated Competition in Romania External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Telecommunications Regulation and Coordinated Competition in Romania 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 Telecommunications Regulation and Coordinated Competition in Romania, Romania Bandwidth 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 .
Stagnating economy with rate increase
– Romania Bandwidth 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.
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. Romania Bandwidth can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Romania Bandwidth has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Romania Bandwidth 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Romania Bandwidth with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Romania Bandwidth in the Strategy & Execution sector and impact the bottomline of the organization.
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 Romania Bandwidth business can come under increasing regulations regarding data privacy, data security, etc.
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. Romania Bandwidth 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.
Increasing wage structure of Romania Bandwidth
– 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 Romania Bandwidth.
Shortening product life cycle
– it is one of the major threat that Romania Bandwidth is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Regulatory challenges
– Romania Bandwidth 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.
Weighted SWOT Analysis of Telecommunications Regulation and Coordinated Competition in Romania 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 Telecommunications Regulation and Coordinated Competition in Romania 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 Telecommunications Regulation and Coordinated Competition in Romania 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 Telecommunications Regulation and Coordinated Competition in Romania 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 Telecommunications Regulation and Coordinated Competition in Romania 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 Romania Bandwidth needs to make to build a sustainable competitive advantage.
