Modularity in Design and Manufacturing: Application to Commercial Aircraft SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Modularity in Design and Manufacturing: Application to Commercial Aircraft
To maximize their effectiveness, color cases should be printed in color.The note discusses the modularization of design, and the modularization of manufacturing in the commercial aerospace industry. It is intended to be taught with the case, "Boeing 737 Industrial Footprint: The Wichita Decision," HBS No. 612-036.
Swot Analysis of "Modularity in Design and Manufacturing: Application to Commercial Aircraft" written by Willy Shih, Margaret Pierson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Modularization Wichita facing as an external strategic factors. Some of the topics covered in Modularity in Design and Manufacturing: Application to Commercial Aircraft case study are - Strategic Management Strategies, Disruptive innovation, IT, Manufacturing, Product development and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Modularity in Design and Manufacturing: Application to Commercial Aircraft casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, talent flight as more people leaving formal jobs, 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, supply chains are disrupted by pandemic ,
there is backlash against globalization, technology disruption, etc
Introduction to SWOT Analysis of Modularity in Design and Manufacturing: Application to Commercial Aircraft
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Modularity in Design and Manufacturing: Application to Commercial Aircraft case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Modularization Wichita, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Modularization Wichita 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 Modularity in Design and Manufacturing: Application to Commercial Aircraft can be done for the following purposes –
1. Strategic planning using facts provided in Modularity in Design and Manufacturing: Application to Commercial Aircraft case study
2. Improving business portfolio management of Modularization Wichita
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 Modularization Wichita
Strengths Modularity in Design and Manufacturing: Application to Commercial Aircraft | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Modularization Wichita in Modularity in Design and Manufacturing: Application to Commercial Aircraft Harvard Business Review case study are -
Learning organization
- Modularization Wichita 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 Modularization Wichita is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Modularity in Design and Manufacturing: Application to Commercial Aircraft Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Modularization Wichita 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 Strategy & Execution field
– Modularization Wichita 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 Modularization Wichita in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the Modularity in Design and Manufacturing: Application to Commercial Aircraft 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.
Cross disciplinary teams
– Horizontal connected teams at the Modularization Wichita are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Sustainable margins compare to other players in Strategy & Execution industry
– Modularity in Design and Manufacturing: Application to Commercial Aircraft firm has clearly differentiated products in the market place. This has enabled Modularization Wichita to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Modularization Wichita to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Modularization Wichita is present in almost all the verticals within the industry. This has provided firm in Modularity in Design and Manufacturing: Application to Commercial Aircraft 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.
Training and development
– Modularization Wichita has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Modularity in Design and Manufacturing: Application to Commercial Aircraft 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.
Analytics focus
– Modularization Wichita 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 Willy Shih, Margaret Pierson 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.
High switching costs
– The high switching costs that Modularization Wichita 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.
Ability to recruit top talent
– Modularization Wichita is one of the leading recruiters in the industry. Managers in the Modularity in Design and Manufacturing: Application to Commercial Aircraft are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Modularization Wichita is one of the most innovative firm in sector. Manager in Modularity in Design and Manufacturing: Application to Commercial Aircraft Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Modularity in Design and Manufacturing: Application to Commercial Aircraft | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Modularity in Design and Manufacturing: Application to Commercial Aircraft are -
Products dominated business model
– Even though Modularization Wichita 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 - Modularity in Design and Manufacturing: Application to Commercial Aircraft should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Modularity in Design and Manufacturing: Application to Commercial Aircraft 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 Modularity in Design and Manufacturing: Application to Commercial Aircraft can leverage the sales team experience to cultivate customer relationships as Modularization Wichita is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Willy Shih, Margaret Pierson suggests that, Modularization Wichita is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Skills based hiring
– The stress on hiring functional specialists at Modularization Wichita 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Modularity in Design and Manufacturing: Application to Commercial Aircraft, is just above the industry average. Modularization Wichita needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Capital Spending Reduction
– Even during the low interest decade, Modularization Wichita 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Modularity in Design and Manufacturing: Application to Commercial Aircraft 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 Modularization Wichita 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Modularization Wichita 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.
Increasing silos among functional specialists
– The organizational structure of Modularization Wichita is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Modularization Wichita needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Modularization Wichita to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Modularity in Design and Manufacturing: Application to Commercial Aircraft 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 Modularization Wichita has relatively successful track record of launching new products.
Need for greater diversity
– Modularization Wichita 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.
Opportunities Modularity in Design and Manufacturing: Application to Commercial Aircraft | 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 Modularity in Design and Manufacturing: Application to Commercial Aircraft are -
Buying journey improvements
– Modularization Wichita can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Modularity in Design and Manufacturing: Application to Commercial Aircraft 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Modularization Wichita is facing challenges because of the dominance of functional experts in the organization. Modularity in Design and Manufacturing: Application to Commercial Aircraft 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.
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. Modularization Wichita 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
– Modularization Wichita 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 Modularity in Design and Manufacturing: Application to Commercial Aircraft - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Modularization Wichita to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Modularization Wichita 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.
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 Modularization Wichita in the consumer business. Now Modularization Wichita can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Modularization Wichita to increase its market reach. Modularization Wichita 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Modularization Wichita 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 Modularization Wichita to hire the very best people irrespective of their geographical location.
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 Modularization Wichita 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.
Manufacturing automation
– Modularization Wichita 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.
Learning at scale
– Online learning technologies has now opened space for Modularization Wichita 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.
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. Modularization Wichita 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. Modularization Wichita 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Modularization Wichita 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 Modularity in Design and Manufacturing: Application to Commercial Aircraft External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Modularity in Design and Manufacturing: Application to Commercial Aircraft are -
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.
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. Modularization Wichita needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Modularization Wichita 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Modularization Wichita with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Shortening product life cycle
– it is one of the major threat that Modularization Wichita is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Modularization Wichita
– 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 Modularization Wichita.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Modularization Wichita 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 Modularity in Design and Manufacturing: Application to Commercial Aircraft .
Technology acceleration in Forth Industrial Revolution
– Modularization Wichita has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Modularization Wichita 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.
Environmental challenges
– Modularization Wichita 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. Modularization Wichita can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
High dependence on third party suppliers
– Modularization Wichita 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Modularization Wichita 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.
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.
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. Modularization Wichita can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Modularity in Design and Manufacturing: Application to Commercial Aircraft 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 Modularity in Design and Manufacturing: Application to Commercial Aircraft 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 Modularity in Design and Manufacturing: Application to Commercial Aircraft 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 Modularity in Design and Manufacturing: Application to Commercial Aircraft 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 Modularity in Design and Manufacturing: Application to Commercial Aircraft 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 Modularization Wichita needs to make to build a sustainable competitive advantage.