General Motors Technical Center India - Powertrain Engineering SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of General Motors Technical Center India - Powertrain Engineering
To maximize their effectiveness, color cases should be printed in color.Prabjot Nanua was proud of the growing capabilities of the General Motors Technical Center India Powertrain Engineering group that he oversaw. Since 2003 engineers there had expanded the center's capabilities, developing a reputation within GM for completing high-quality design and analysis projects for other Technical Centers at a substantially lower cost. In areas such as tolerance stacking analysis, GMTCI-Powertrain was now the only location in GM worldwide that performed this type of work. Nanua thought about the next stage of development for the center. Should they "go deep" and focus on more areas of technical competency where the center had developed a competitive advantage? GMTCI could become the center of expertise for a narrower set of methods and capabilities like they had done in tolerance stacking. Or should they "go broad" and continue to lobby headquarters for more complex assignments that might ultimately lead to program ownership for an entire vehicle? Each scenario had different implications for how GMTCI fit within the network of Technical Centers and corporate GM. If they did the former, they might be faced with the perception that GMTCI was limited to back-office analysis for GM's products. But when Nanua put on his headquarters "hat," he wondered if that shouldn't also be the corporation's priority for them.
Authors :: Willy Shih, William Jurist, Brian McIntosh, Helen Wang
Swot Analysis of "General Motors Technical Center India - Powertrain Engineering" written by Willy Shih, William Jurist, Brian McIntosh, Helen Wang includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Gmtci Nanua facing as an external strategic factors. Some of the topics covered in General Motors Technical Center India - Powertrain Engineering case study are - Strategic Management Strategies, Emerging markets, Globalization, Knowledge management, Operations management and Technology & Operations.
Some of the macro environment factors that can be used to understand the General Motors Technical Center India - Powertrain Engineering casestudy better are - – increasing transportation and logistics costs, there is backlash against globalization, increasing household debt because of falling income levels, there is increasing trade war between United States & China, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, customer relationship management is fast transforming because of increasing concerns over data privacy,
geopolitical disruptions, increasing commodity prices, etc
Introduction to SWOT Analysis of General Motors Technical Center India - Powertrain Engineering
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in General Motors Technical Center India - Powertrain Engineering case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Gmtci Nanua, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Gmtci Nanua 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 General Motors Technical Center India - Powertrain Engineering can be done for the following purposes –
1. Strategic planning using facts provided in General Motors Technical Center India - Powertrain Engineering case study
2. Improving business portfolio management of Gmtci Nanua
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 Gmtci Nanua
Strengths General Motors Technical Center India - Powertrain Engineering | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Gmtci Nanua in General Motors Technical Center India - Powertrain Engineering Harvard Business Review case study are -
Training and development
– Gmtci Nanua has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in General Motors Technical Center India - Powertrain Engineering 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.
High switching costs
– The high switching costs that Gmtci Nanua 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.
Successful track record of launching new products
– Gmtci Nanua has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Gmtci Nanua 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.
Learning organization
- Gmtci Nanua 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 Gmtci Nanua is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in General Motors Technical Center India - Powertrain Engineering Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Gmtci Nanua has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Gmtci Nanua to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Gmtci Nanua digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Gmtci Nanua 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.
Sustainable margins compare to other players in Technology & Operations industry
– General Motors Technical Center India - Powertrain Engineering firm has clearly differentiated products in the market place. This has enabled Gmtci Nanua to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Gmtci Nanua to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Gmtci Nanua 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 General Motors Technical Center India - Powertrain Engineering - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Gmtci Nanua is one of the most innovative firm in sector. Manager in General Motors Technical Center India - Powertrain Engineering Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Gmtci Nanua is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Gmtci Nanua is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Willy Shih, William Jurist, Brian McIntosh, Helen Wang 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.
Cross disciplinary teams
– Horizontal connected teams at the Gmtci Nanua 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.
Weaknesses General Motors Technical Center India - Powertrain Engineering | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of General Motors Technical Center India - Powertrain Engineering are -
Capital Spending Reduction
– Even during the low interest decade, Gmtci Nanua 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.
Slow to strategic competitive environment developments
– As General Motors Technical Center India - Powertrain Engineering HBR case study mentions - Gmtci Nanua 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Gmtci Nanua 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study General Motors Technical Center India - Powertrain Engineering, is just above the industry average. Gmtci Nanua 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Gmtci Nanua is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study General Motors Technical Center India - Powertrain Engineering can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study General Motors Technical Center India - Powertrain Engineering, it seems that the employees of Gmtci Nanua 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study General Motors Technical Center India - Powertrain Engineering, in the dynamic environment Gmtci Nanua has struggled to respond to the nimble upstart competition. Gmtci Nanua has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Gmtci Nanua 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 - General Motors Technical Center India - Powertrain Engineering should strive to include more intangible value offerings along with its core products and services.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the General Motors Technical Center India - Powertrain Engineering 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 Gmtci Nanua has relatively successful track record of launching new products.
High bargaining power of channel partners
– Because of the regulatory requirements, Willy Shih, William Jurist, Brian McIntosh, Helen Wang suggests that, Gmtci Nanua 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 operating costs
– Compare to the competitors, firm in the HBR case study General Motors Technical Center India - Powertrain Engineering 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 Gmtci Nanua 's lucrative customers.
Opportunities General Motors Technical Center India - Powertrain Engineering | 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 General Motors Technical Center India - Powertrain Engineering 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 Gmtci Nanua 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.
Building a culture of innovation
– managers at Gmtci Nanua 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.
Manufacturing automation
– Gmtci Nanua 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.
Learning at scale
– Online learning technologies has now opened space for Gmtci Nanua 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.
Using analytics as competitive advantage
– Gmtci Nanua 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 General Motors Technical Center India - Powertrain Engineering - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Gmtci Nanua to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Gmtci Nanua 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Gmtci Nanua is facing challenges because of the dominance of functional experts in the organization. General Motors Technical Center India - Powertrain Engineering 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Gmtci Nanua can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Gmtci Nanua 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. Gmtci Nanua 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.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Gmtci Nanua can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Gmtci Nanua can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Gmtci Nanua 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Gmtci Nanua 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, General Motors Technical Center India - Powertrain Engineering, 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 General Motors Technical Center India - Powertrain Engineering External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study General Motors Technical Center India - Powertrain Engineering are -
High dependence on third party suppliers
– Gmtci Nanua 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.
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. Gmtci Nanua 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.
Shortening product life cycle
– it is one of the major threat that Gmtci Nanua is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Gmtci Nanua with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Gmtci Nanua has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Gmtci Nanua 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 Gmtci Nanua 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Gmtci Nanua 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 General Motors Technical Center India - Powertrain Engineering .
Stagnating economy with rate increase
– Gmtci Nanua 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.
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. Gmtci Nanua 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.
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.
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 Gmtci Nanua.
Environmental challenges
– Gmtci Nanua 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. Gmtci Nanua can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Weighted SWOT Analysis of General Motors Technical Center India - Powertrain Engineering 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 General Motors Technical Center India - Powertrain Engineering 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 General Motors Technical Center India - Powertrain Engineering 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 General Motors Technical Center India - Powertrain Engineering 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 General Motors Technical Center India - Powertrain Engineering 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 Gmtci Nanua needs to make to build a sustainable competitive advantage.
