INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market
Indian Telecom Infrastructure Ltd. (INTELFRA) is about to develop a proprietary basic telecom basic infrastructure and deliver that infrastructure on demand to the customers in Lake East, India. Using the telecom infrastructure (TI) services provided by INTELFRA, customers will no longer need to incur the high fixed costs of building the required infrastructure on their own, or commit to long-term fixed-price outsourcing contracts. Though the business is promising, TI services required significant ex ante development and start-up costs, and the demand was uncertain because Lake East is an upcoming township comprising both residential and commercial spaces. Pricing became a difficult yet crucial business decision for INTELFRA. High prices could drive customers away, but low prices would not be profitable, possibly even insufficient to cover the high investment costs. This case addresses the critical pricing issues facing telecom infrastructure services providers.
Swot Analysis of "INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market" written by Ashok Banerjee, Indranil Bose, Debashis Saha, Minyi Huang includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Intelfra Infrastructure facing as an external strategic factors. Some of the topics covered in INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market case study are - Strategic Management Strategies, Pricing and Finance & Accounting.
Some of the macro environment factors that can be used to understand the INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market casestudy better are - – challanges to central banks by blockchain based private currencies, increasing energy prices, increasing commodity prices, technology disruption, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, there is backlash against globalization,
increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Intelfra Infrastructure, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Intelfra Infrastructure 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 INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market can be done for the following purposes –
1. Strategic planning using facts provided in INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market case study
2. Improving business portfolio management of Intelfra Infrastructure
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 Intelfra Infrastructure
Strengths INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Intelfra Infrastructure in INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market 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.
Superior customer experience
– The customer experience strategy of Intelfra Infrastructure in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Intelfra Infrastructure
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Intelfra Infrastructure does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Intelfra Infrastructure is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Finance & Accounting field
– Intelfra Infrastructure 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 Intelfra Infrastructure 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 Intelfra Infrastructure in the sector have low bargaining power. INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Intelfra Infrastructure to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Intelfra Infrastructure is present in almost all the verticals within the industry. This has provided firm in INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market 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.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Intelfra Infrastructure digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Intelfra Infrastructure 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.
Ability to recruit top talent
– Intelfra Infrastructure is one of the leading recruiters in the industry. Managers in the INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Intelfra Infrastructure has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market 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.
Innovation driven organization
– Intelfra Infrastructure is one of the most innovative firm in sector. Manager in INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Highly skilled collaborators
– Intelfra Infrastructure 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 INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market are -
Capital Spending Reduction
– Even during the low interest decade, Intelfra Infrastructure has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Lack of clear differentiation of Intelfra Infrastructure products
– To increase the profitability and margins on the products, Intelfra Infrastructure needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market, in the dynamic environment Intelfra Infrastructure has struggled to respond to the nimble upstart competition. Intelfra Infrastructure has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market, 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.
High operating costs
– Compare to the competitors, firm in the HBR case study INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market 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 Intelfra Infrastructure 's lucrative customers.
Products dominated business model
– Even though Intelfra Infrastructure 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 - INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Intelfra Infrastructure 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.
Interest costs
– Compare to the competition, Intelfra Infrastructure 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 INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market HBR case study mentions - Intelfra Infrastructure 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.
Increasing silos among functional specialists
– The organizational structure of Intelfra Infrastructure is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Intelfra Infrastructure needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Intelfra Infrastructure to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market, it seems that the employees of Intelfra Infrastructure 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.
Opportunities INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market | 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 INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market are -
Buying journey improvements
– Intelfra Infrastructure can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market 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.
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 Intelfra Infrastructure in the consumer business. Now Intelfra Infrastructure can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Intelfra Infrastructure 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.
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. Intelfra Infrastructure can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Intelfra Infrastructure 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 INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Intelfra Infrastructure to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Intelfra Infrastructure can use these opportunities to build new business models that can help the communities that Intelfra Infrastructure operates in. Secondly it can use opportunities from government spending in Finance & Accounting sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Intelfra Infrastructure 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.
Better consumer reach
– The expansion of the 5G network will help Intelfra Infrastructure to increase its market reach. Intelfra Infrastructure 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Intelfra Infrastructure is facing challenges because of the dominance of functional experts in the organization. INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Creating value in data economy
– The success of analytics program of Intelfra Infrastructure has opened avenues for new revenue streams for the organization in the industry. This can help Intelfra Infrastructure to build a more holistic ecosystem as suggested in the INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market case study. Intelfra Infrastructure can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Intelfra Infrastructure can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Intelfra Infrastructure 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.
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. Intelfra Infrastructure 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. Intelfra Infrastructure 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.
Threats INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market are -
Stagnating economy with rate increase
– Intelfra Infrastructure 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.
Technology acceleration in Forth Industrial Revolution
– Intelfra Infrastructure has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Intelfra Infrastructure 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.
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 Intelfra Infrastructure in the Finance & Accounting sector and impact the bottomline 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. Intelfra Infrastructure 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.
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. Intelfra Infrastructure can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Intelfra Infrastructure 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
– Intelfra Infrastructure 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. Intelfra Infrastructure can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
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. Intelfra Infrastructure needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Regulatory challenges
– Intelfra Infrastructure 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.
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 Intelfra Infrastructure.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Intelfra Infrastructure 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.
Increasing wage structure of Intelfra Infrastructure
– 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 Intelfra Infrastructure.
Weighted SWOT Analysis of INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market 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 INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market 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 INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market 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 INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market 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 INTELFRA Ltd.: Pricing Telecom Infrastructure in a Monopolistic Market 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 Intelfra Infrastructure needs to make to build a sustainable competitive advantage.
