Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C)
The C case provides data on the reliability of both the F100 jet engine by Pratt and Whitney and the rival F110 by General Electric from 1975 to 1990. In addition, the case charts a proxy for the number of contractual disputes from 1970 to 1987 for all subsidiaries of the parent companies of Pratt and Whitney and General Electric.
Swot Analysis of "Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C)" written by Matthias Hild, Keith J. Crocker includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Pratt Whitney facing as an external strategic factors. Some of the topics covered in Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) case study are - Strategic Management Strategies, Negotiations, Risk management, Technology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions,
challanges to central banks by blockchain based private currencies, technology disruption, etc
Introduction to SWOT Analysis of Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Pratt Whitney, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Pratt Whitney 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 Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) can be done for the following purposes –
1. Strategic planning using facts provided in Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) case study
2. Improving business portfolio management of Pratt Whitney
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 Pratt Whitney
Strengths Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Pratt Whitney in Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) Harvard Business Review case study are -
Analytics focus
– Pratt Whitney 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 Matthias Hild, Keith J. Crocker 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.
Superior customer experience
– The customer experience strategy of Pratt Whitney in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Pratt Whitney is one of the leading recruiters in the industry. Managers in the Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Pratt Whitney in the sector have low bargaining power. Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Pratt Whitney to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Pratt Whitney 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 Pratt Whitney is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Strategy & Execution industry
– Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) firm has clearly differentiated products in the market place. This has enabled Pratt Whitney to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Pratt Whitney to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Pratt Whitney are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
High switching costs
– The high switching costs that Pratt Whitney has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Highly skilled collaborators
– Pratt Whitney 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 Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Pratt Whitney
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Pratt Whitney does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Pratt Whitney has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) 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.
Ability to lead change in Strategy & Execution field
– Pratt Whitney 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 Pratt Whitney in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) 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 Pratt Whitney has relatively successful track record of launching new products.
Slow decision making process
– As mentioned earlier in the report, Pratt Whitney 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. Pratt Whitney 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.
Skills based hiring
– The stress on hiring functional specialists at Pratt Whitney 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C), it seems that the employees of Pratt Whitney 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.
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 Pratt Whitney supply chain. Even after few cautionary changes mentioned in the HBR case study - Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Pratt Whitney vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Pratt Whitney is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) 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 Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) can leverage the sales team experience to cultivate customer relationships as Pratt Whitney is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Pratt Whitney 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.
Increasing silos among functional specialists
– The organizational structure of Pratt Whitney is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Pratt Whitney needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Pratt Whitney to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Pratt Whitney 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.
Products dominated business model
– Even though Pratt Whitney 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 - Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) should strive to include more intangible value offerings along with its core products and services.
Opportunities Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) | 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 Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Pratt Whitney 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Pratt Whitney can use these opportunities to build new business models that can help the communities that Pratt Whitney operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Better consumer reach
– The expansion of the 5G network will help Pratt Whitney to increase its market reach. Pratt Whitney 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Pratt Whitney 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.
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 Pratt Whitney in the consumer business. Now Pratt Whitney can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Pratt Whitney can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) 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.
Creating value in data economy
– The success of analytics program of Pratt Whitney has opened avenues for new revenue streams for the organization in the industry. This can help Pratt Whitney to build a more holistic ecosystem as suggested in the Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) case study. Pratt Whitney can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Pratt Whitney 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 Strategy & Execution segment.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Pratt Whitney 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 Pratt Whitney to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Pratt Whitney 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 Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Pratt Whitney to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Manufacturing automation
– Pratt Whitney 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.
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. Pratt Whitney 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. Pratt Whitney 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.
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 Pratt Whitney 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.
Threats Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) are -
Stagnating economy with rate increase
– Pratt Whitney 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.
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. Pratt Whitney needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Pratt Whitney 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 Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) .
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. Pratt Whitney 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.
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 Pratt Whitney business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Pratt Whitney 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.
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 Pratt Whitney in the Strategy & Execution sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Pratt Whitney is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Pratt Whitney.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Pratt Whitney with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Pratt Whitney 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C), Pratt Whitney 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 .
Weighted SWOT Analysis of Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) 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 Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) 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 Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) 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 Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) 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 Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) 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 Pratt Whitney needs to make to build a sustainable competitive advantage.
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