New Technology Adoption at Century Real Estate SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of New Technology Adoption at Century Real Estate
This case presents an example of the challenges faced by a firm when a new technological option is available. The case is set in the real estate industry in a developing nation (India). The case considers the perspective of Ravindra Pai, Managing Director of Century Real Estate. Ravindra Pai has to choose, for a part of a new project, between two technologies of building construction: the existing and proven conventional reinforced cement concrete (RCC) method of construction and the new and unproven pre-fabricated construction technology for an upcoming residential project in Bangalore (IT city of India). The case explores the benefits and consequences of choosing either technology and presents an example to understand the challenges faced by firms while deciding whether to invest in a new technology.
Swot Analysis of "New Technology Adoption at Century Real Estate" written by Anshuman Tripathy, Monika Singh, Sachin Kumar includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ravindra Pai facing as an external strategic factors. Some of the topics covered in New Technology Adoption at Century Real Estate case study are - Strategic Management Strategies, and Technology & Operations.
Some of the macro environment factors that can be used to understand the New Technology Adoption at Century Real Estate casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, customer relationship management is fast transforming because of increasing concerns over data privacy, wage bills are increasing, geopolitical disruptions, increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models,
competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of New Technology Adoption at Century Real Estate
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in New Technology Adoption at Century Real Estate case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ravindra Pai, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ravindra Pai 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 New Technology Adoption at Century Real Estate can be done for the following purposes –
1. Strategic planning using facts provided in New Technology Adoption at Century Real Estate case study
2. Improving business portfolio management of Ravindra Pai
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Ravindra Pai
Strengths New Technology Adoption at Century Real Estate | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ravindra Pai in New Technology Adoption at Century Real Estate Harvard Business Review case study are -
Sustainable margins compare to other players in Technology & Operations industry
– New Technology Adoption at Century Real Estate firm has clearly differentiated products in the market place. This has enabled Ravindra Pai to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Ravindra Pai to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Ravindra Pai 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 New Technology Adoption at Century Real Estate HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Ravindra Pai 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 Ravindra Pai is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in New Technology Adoption at Century Real Estate Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Ravindra Pai is one of the leading recruiters in the industry. Managers in the New Technology Adoption at Century Real Estate are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Ravindra Pai is present in almost all the verticals within the industry. This has provided firm in New Technology Adoption at Century Real Estate 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.
Cross disciplinary teams
– Horizontal connected teams at the Ravindra Pai 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.
Low bargaining power of suppliers
– Suppliers of Ravindra Pai in the sector have low bargaining power. New Technology Adoption at Century Real Estate has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ravindra Pai to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Technology & Operations field
– Ravindra Pai 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 Ravindra Pai in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Ravindra Pai
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ravindra Pai does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Ravindra Pai has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ravindra Pai to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the New Technology Adoption at Century Real Estate 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.
Training and development
– Ravindra Pai has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in New Technology Adoption at Century Real Estate 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.
Weaknesses New Technology Adoption at Century Real Estate | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of New Technology Adoption at Century Real Estate are -
Workers concerns about automation
– As automation is fast increasing in the segment, Ravindra Pai 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.
Lack of clear differentiation of Ravindra Pai products
– To increase the profitability and margins on the products, Ravindra Pai needs to provide more differentiated products than what it is currently offering in the marketplace.
High bargaining power of channel partners
– Because of the regulatory requirements, Anshuman Tripathy, Monika Singh, Sachin Kumar suggests that, Ravindra Pai 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.
High cash cycle compare to competitors
Ravindra Pai 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.
Increasing silos among functional specialists
– The organizational structure of Ravindra Pai is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Ravindra Pai needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ravindra Pai to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study New Technology Adoption at Century Real Estate 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 New Technology Adoption at Century Real Estate can leverage the sales team experience to cultivate customer relationships as Ravindra Pai is planning to shift buying processes online.
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 Ravindra Pai supply chain. Even after few cautionary changes mentioned in the HBR case study - New Technology Adoption at Century Real Estate, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ravindra Pai vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study New Technology Adoption at Century Real Estate, is just above the industry average. Ravindra Pai 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study New Technology Adoption at Century Real Estate, it seems that the employees of Ravindra Pai 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.
Low market penetration in new markets
– Outside its home market of Ravindra Pai, firm in the HBR case study New Technology Adoption at Century Real Estate needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As New Technology Adoption at Century Real Estate HBR case study mentions - Ravindra Pai 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.
Opportunities New Technology Adoption at Century Real Estate | 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 New Technology Adoption at Century Real Estate are -
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 Ravindra Pai 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.
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 Ravindra Pai in the consumer business. Now Ravindra Pai can target international markets with far fewer capital restrictions requirements than the existing system.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Ravindra Pai can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ravindra Pai in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Better consumer reach
– The expansion of the 5G network will help Ravindra Pai to increase its market reach. Ravindra Pai 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 Ravindra Pai 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 Ravindra Pai to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Ravindra Pai can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. New Technology Adoption at Century Real Estate 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.
Building a culture of innovation
– managers at Ravindra Pai 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 Technology & Operations segment.
Leveraging digital technologies
– Ravindra Pai 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ravindra Pai can use these opportunities to build new business models that can help the communities that Ravindra Pai operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Ravindra Pai 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. Ravindra Pai 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.
Developing new processes and practices
– Ravindra Pai can develop new processes and procedures in Technology & Operations 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ravindra Pai can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, New Technology Adoption at Century Real Estate, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats New Technology Adoption at Century Real Estate External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study New Technology Adoption at Century Real Estate are -
High dependence on third party suppliers
– Ravindra Pai 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.
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 Ravindra Pai business can come under increasing regulations regarding data privacy, data security, etc.
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 Ravindra Pai with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Ravindra Pai 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.
Shortening product life cycle
– it is one of the major threat that Ravindra Pai is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Ravindra Pai 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 Technology & Operations industry regulations.
Environmental challenges
– Ravindra Pai 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. Ravindra Pai can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ravindra Pai 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 New Technology Adoption at Century Real Estate .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study New Technology Adoption at Century Real Estate, Ravindra Pai may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
Increasing wage structure of Ravindra Pai
– 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 Ravindra Pai.
Technology acceleration in Forth Industrial Revolution
– Ravindra Pai has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Ravindra Pai needs to keep up with the evolution of technology in the Technology & Operations 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.
Consumer confidence and its impact on Ravindra Pai 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.
Weighted SWOT Analysis of New Technology Adoption at Century Real Estate 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 New Technology Adoption at Century Real Estate 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 New Technology Adoption at Century Real Estate 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 New Technology Adoption at Century Real Estate 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 New Technology Adoption at Century Real Estate 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 Ravindra Pai needs to make to build a sustainable competitive advantage.
