Indus Towers: Collaborating with Competitors on Infrastructure SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Indus Towers: Collaborating with Competitors on Infrastructure
The case describes the formation of Indus Towers, the largest telecom tower company in the world which has a joint venture created to build and manage the passive infrastructure of wireless telecom operators by bringing together three competitors in India's tough telecom market-Bharti AirteI, Vodafone Essar, and Idea Cellular-and merging their tower holdings. It focuses on the issue as to how do you collaborate with your competitors in setting up towers but engage in a brutal competition with them in the market place?
Swot Analysis of "Indus Towers: Collaborating with Competitors on Infrastructure" written by Ranjay Gulati, F. Asis Martinez-Jerez, V.G. Narayanan, Rachna Tahilyani includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Towers Indus facing as an external strategic factors. Some of the topics covered in Indus Towers: Collaborating with Competitors on Infrastructure case study are - Strategic Management Strategies, Joint ventures and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Indus Towers: Collaborating with Competitors on Infrastructure casestudy better are - – wage bills are increasing, talent flight as more people leaving formal jobs, there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices, supply chains are disrupted by pandemic , increasing commodity prices,
central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Indus Towers: Collaborating with Competitors on Infrastructure
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Indus Towers: Collaborating with Competitors on Infrastructure case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Towers Indus, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Towers Indus 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 Indus Towers: Collaborating with Competitors on Infrastructure can be done for the following purposes –
1. Strategic planning using facts provided in Indus Towers: Collaborating with Competitors on Infrastructure case study
2. Improving business portfolio management of Towers Indus
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Towers Indus
Strengths Indus Towers: Collaborating with Competitors on Infrastructure | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Towers Indus in Indus Towers: Collaborating with Competitors on Infrastructure Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Towers Indus in the sector have low bargaining power. Indus Towers: Collaborating with Competitors on Infrastructure has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Towers Indus to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Towers Indus 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 Towers Indus is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Indus Towers: Collaborating with Competitors on Infrastructure Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Effective Research and Development (R&D)
– Towers Indus 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 Indus Towers: Collaborating with Competitors on Infrastructure - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Strong track record of project management
– Towers Indus is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Towers Indus is present in almost all the verticals within the industry. This has provided firm in Indus Towers: Collaborating with Competitors on Infrastructure 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.
Successful track record of launching new products
– Towers Indus has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Towers Indus 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.
Ability to recruit top talent
– Towers Indus is one of the leading recruiters in the industry. Managers in the Indus Towers: Collaborating with Competitors on Infrastructure are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Towers Indus 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.
Superior customer experience
– The customer experience strategy of Towers Indus in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Finance & Accounting industry
– Indus Towers: Collaborating with Competitors on Infrastructure firm has clearly differentiated products in the market place. This has enabled Towers Indus to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Towers Indus to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Towers Indus 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 Indus Towers: Collaborating with Competitors on Infrastructure HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Towers Indus
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Towers Indus does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Indus Towers: Collaborating with Competitors on Infrastructure | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Indus Towers: Collaborating with Competitors on Infrastructure are -
Low market penetration in new markets
– Outside its home market of Towers Indus, firm in the HBR case study Indus Towers: Collaborating with Competitors on Infrastructure 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 Indus Towers: Collaborating with Competitors on Infrastructure, it seems that the employees of Towers Indus 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.
Skills based hiring
– The stress on hiring functional specialists at Towers Indus 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.
Increasing silos among functional specialists
– The organizational structure of Towers Indus is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Towers Indus needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Towers Indus to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As Indus Towers: Collaborating with Competitors on Infrastructure HBR case study mentions - Towers Indus 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.
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 Towers Indus supply chain. Even after few cautionary changes mentioned in the HBR case study - Indus Towers: Collaborating with Competitors on Infrastructure, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Towers Indus vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Ranjay Gulati, F. Asis Martinez-Jerez, V.G. Narayanan, Rachna Tahilyani suggests that, Towers Indus 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Towers Indus needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Slow decision making process
– As mentioned earlier in the report, Towers Indus 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. Towers Indus 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 Indus Towers: Collaborating with Competitors on Infrastructure 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 Towers Indus 's lucrative customers.
No frontier risks strategy
– After analyzing the HBR case study Indus Towers: Collaborating with Competitors on Infrastructure, it seems that company is thinking about the frontier risks that can impact Finance & Accounting 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.
Opportunities Indus Towers: Collaborating with Competitors on Infrastructure | 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 Indus Towers: Collaborating with Competitors on Infrastructure are -
Creating value in data economy
– The success of analytics program of Towers Indus has opened avenues for new revenue streams for the organization in the industry. This can help Towers Indus to build a more holistic ecosystem as suggested in the Indus Towers: Collaborating with Competitors on Infrastructure case study. Towers Indus can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Towers Indus 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, Indus Towers: Collaborating with Competitors on Infrastructure, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Towers Indus 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 Finance & Accounting segment.
Low interest rates
– Even though inflation is raising its head in most developed economies, Towers Indus 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Towers Indus 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 Towers Indus to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Towers Indus can use these opportunities to build new business models that can help the communities that Towers Indus operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
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. Towers Indus can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Finance & Accounting industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Towers Indus 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. Towers Indus 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.
Learning at scale
– Online learning technologies has now opened space for Towers Indus 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Towers Indus in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Towers Indus can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Towers Indus is facing challenges because of the dominance of functional experts in the organization. Indus Towers: Collaborating with Competitors on Infrastructure 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Towers Indus can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Threats Indus Towers: Collaborating with Competitors on Infrastructure External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Indus Towers: Collaborating with Competitors on Infrastructure are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Towers Indus in the Finance & Accounting industry. The Finance & Accounting 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.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Towers Indus can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Towers Indus with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Towers Indus needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Indus Towers: Collaborating with Competitors on Infrastructure, Towers Indus may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Finance & Accounting .
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 Towers Indus business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Towers Indus 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 Finance & Accounting 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.
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. Towers Indus 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
– Towers Indus has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Towers Indus needs to keep up with the evolution of technology in the Finance & Accounting 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.
Environmental challenges
– Towers Indus 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. Towers Indus can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
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 Towers Indus.
Stagnating economy with rate increase
– Towers Indus 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.
Weighted SWOT Analysis of Indus Towers: Collaborating with Competitors on Infrastructure 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 Indus Towers: Collaborating with Competitors on Infrastructure 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 Indus Towers: Collaborating with Competitors on Infrastructure 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 Indus Towers: Collaborating with Competitors on Infrastructure 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 Indus Towers: Collaborating with Competitors on Infrastructure 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 Towers Indus needs to make to build a sustainable competitive advantage.