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 - – customer relationship management is fast transforming because of increasing concerns over data privacy, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions, technology disruption, increasing energy prices,
increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, 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 -
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.
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.
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.
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.
Innovation driven organization
– Pratt Whitney is one of the most innovative firm in sector. Manager in Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Pratt Whitney 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 Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Pratt Whitney digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Pratt Whitney 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.
Successful track record of launching new products
– Pratt Whitney has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Pratt Whitney 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.
High brand equity
– Pratt Whitney has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Pratt Whitney to keep acquiring new customers and building profitable relationship with both the new and loyal 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.
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.
Operational resilience
– The operational resilience strategy in the Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) 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.
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 -
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.
Interest costs
– Compare to the competition, Pratt Whitney 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C), in the dynamic environment Pratt Whitney has struggled to respond to the nimble upstart competition. Pratt Whitney has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
No frontier risks strategy
– After analyzing the HBR case study Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C), it seems that company is thinking about the frontier risks that can impact Strategy & Execution 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.
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 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.
Need for greater diversity
– Pratt Whitney 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.
Low market penetration in new markets
– Outside its home market of Pratt Whitney, firm in the HBR case study Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Workers concerns about automation
– As automation is fast increasing in the segment, Pratt Whitney 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Matthias Hild, Keith J. Crocker suggests that, Pratt Whitney 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.
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 -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Pratt Whitney can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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.
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.
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.
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.
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.
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.
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.
Developing new processes and practices
– Pratt Whitney can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help 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.
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.
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.
Learning at scale
– Online learning technologies has now opened space for Pratt Whitney 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.
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 -
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.
Increasing wage structure of Pratt Whitney
– 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 Pratt Whitney.
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. Pratt Whitney can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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 .
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.
Technology acceleration in Forth Industrial Revolution
– Pratt Whitney has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Pratt Whitney 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.
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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Pratt Whitney 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.
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.
Regulatory challenges
– Pratt Whitney needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
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.
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.
Feel free to connect with us if you need business research.
You can download Excel Template of Case Study Solution & Analysis of Pushing the Envelope: Engine Development and Procurement for the F-15 Fighter Jet (C)
