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 - – challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, increasing household debt because of falling income levels, increasing commodity prices, geopolitical disruptions, there is backlash against globalization,
talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%, 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.
Innovation driven organization
– Ravindra Pai is one of the most innovative firm in sector. Manager in New Technology Adoption at Century Real Estate Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Ravindra Pai has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ravindra Pai 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.
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.
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.
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.
High switching costs
– The high switching costs that Ravindra Pai 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.
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.
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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Ravindra Pai digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ravindra Pai 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.
Superior customer experience
– The customer experience strategy of Ravindra Pai in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous 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 -
Interest costs
– Compare to the competition, Ravindra Pai 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the New Technology Adoption at Century Real Estate 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 Ravindra Pai has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Ravindra Pai 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.
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.
High operating costs
– Compare to the competitors, firm in the HBR case study New Technology Adoption at Century Real Estate 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 Ravindra Pai 's lucrative customers.
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.
Skills based hiring
– The stress on hiring functional specialists at Ravindra Pai 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.
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.
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 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.
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 -
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.
Loyalty marketing
– Ravindra Pai has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Creating value in data economy
– The success of analytics program of Ravindra Pai has opened avenues for new revenue streams for the organization in the industry. This can help Ravindra Pai to build a more holistic ecosystem as suggested in the New Technology Adoption at Century Real Estate case study. Ravindra Pai can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Ravindra Pai can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Ravindra Pai 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.
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.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ravindra Pai is facing challenges because of the dominance of functional experts in the organization. New Technology Adoption at Century Real Estate 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.
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.
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.
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.
Using analytics as competitive advantage
– Ravindra Pai 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 New Technology Adoption at Century Real Estate - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ravindra Pai to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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 -
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.
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. Ravindra Pai 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.
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 .
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.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Ravindra Pai can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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.
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.
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. Ravindra Pai needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ravindra Pai in the Technology & Operations industry. The Technology & Operations 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.
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.
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.