Case Study Description of BellSouth Enterprises: The Cellular Billing Project
When BellSouth Enterprises decided to aggressively pursue the international cellular market, it needed new software in order to cope with the complexities of cellular billing and the country-specific variations in the international cellular market. BellSouth made the decision to enter into a strategic alliance with TeleSciences. This case explores why it made this decision and what the ramifications of this decision were for BellSouth and TeleSciences.
Authors :: John J. Sviokla, Mark Keil, Steve Simonson
Swot Analysis of "BellSouth Enterprises: The Cellular Billing Project" written by John J. Sviokla, Mark Keil, Steve Simonson includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bellsouth Cellular facing as an external strategic factors. Some of the topics covered in BellSouth Enterprises: The Cellular Billing Project case study are - Strategic Management Strategies, IT, Marketing and Technology & Operations.
Some of the macro environment factors that can be used to understand the BellSouth Enterprises: The Cellular Billing Project casestudy better are - – central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, increasing government debt because of Covid-19 spendings, talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, geopolitical disruptions,
wage bills are increasing, technology disruption, etc
Introduction to SWOT Analysis of BellSouth Enterprises: The Cellular Billing Project
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in BellSouth Enterprises: The Cellular Billing Project case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bellsouth Cellular, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bellsouth Cellular 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 BellSouth Enterprises: The Cellular Billing Project can be done for the following purposes –
1. Strategic planning using facts provided in BellSouth Enterprises: The Cellular Billing Project case study
2. Improving business portfolio management of Bellsouth Cellular
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 Bellsouth Cellular
Strengths BellSouth Enterprises: The Cellular Billing Project | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bellsouth Cellular in BellSouth Enterprises: The Cellular Billing Project Harvard Business Review case study are -
Innovation driven organization
– Bellsouth Cellular is one of the most innovative firm in sector. Manager in BellSouth Enterprises: The Cellular Billing Project Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Bellsouth Cellular has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Bellsouth Cellular 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 Bellsouth Cellular digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Bellsouth Cellular 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
– BellSouth Enterprises: The Cellular Billing Project firm has clearly differentiated products in the market place. This has enabled Bellsouth Cellular to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Bellsouth Cellular to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Bellsouth Cellular is present in almost all the verticals within the industry. This has provided firm in BellSouth Enterprises: The Cellular Billing Project 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.
Low bargaining power of suppliers
– Suppliers of Bellsouth Cellular in the sector have low bargaining power. BellSouth Enterprises: The Cellular Billing Project has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Bellsouth Cellular to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Bellsouth Cellular is one of the leading recruiters in the industry. Managers in the BellSouth Enterprises: The Cellular Billing Project are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Bellsouth Cellular 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.
Ability to lead change in Technology & Operations field
– Bellsouth Cellular 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 Bellsouth Cellular in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Bellsouth Cellular 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 BellSouth Enterprises: The Cellular Billing Project HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Bellsouth Cellular 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 BellSouth Enterprises: The Cellular Billing Project - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Bellsouth Cellular has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in BellSouth Enterprises: The Cellular Billing Project 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 BellSouth Enterprises: The Cellular Billing Project | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of BellSouth Enterprises: The Cellular Billing Project are -
Slow decision making process
– As mentioned earlier in the report, Bellsouth Cellular has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Bellsouth Cellular even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Need for greater diversity
– Bellsouth Cellular 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.
Interest costs
– Compare to the competition, Bellsouth Cellular 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 cash cycle compare to competitors
Bellsouth Cellular 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Bellsouth Cellular 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the BellSouth Enterprises: The Cellular Billing Project 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 Bellsouth Cellular has relatively successful track record of launching new products.
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 Bellsouth Cellular supply chain. Even after few cautionary changes mentioned in the HBR case study - BellSouth Enterprises: The Cellular Billing Project, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Bellsouth Cellular vulnerable to further global disruptions in South East Asia.
Slow to strategic competitive environment developments
– As BellSouth Enterprises: The Cellular Billing Project HBR case study mentions - Bellsouth Cellular 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study BellSouth Enterprises: The Cellular Billing Project, is just above the industry average. Bellsouth Cellular 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study BellSouth Enterprises: The Cellular Billing Project, in the dynamic environment Bellsouth Cellular has struggled to respond to the nimble upstart competition. Bellsouth Cellular has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study BellSouth Enterprises: The Cellular Billing Project, it seems that the employees of Bellsouth Cellular 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.
Opportunities BellSouth Enterprises: The Cellular Billing Project | 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 BellSouth Enterprises: The Cellular Billing Project are -
Loyalty marketing
– Bellsouth Cellular 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Bellsouth Cellular is facing challenges because of the dominance of functional experts in the organization. BellSouth Enterprises: The Cellular Billing Project 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.
Learning at scale
– Online learning technologies has now opened space for Bellsouth Cellular 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.
Manufacturing automation
– Bellsouth Cellular 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Bellsouth Cellular 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, BellSouth Enterprises: The Cellular Billing Project, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Bellsouth Cellular has opened avenues for new revenue streams for the organization in the industry. This can help Bellsouth Cellular to build a more holistic ecosystem as suggested in the BellSouth Enterprises: The Cellular Billing Project case study. Bellsouth Cellular can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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. Bellsouth Cellular 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
– Bellsouth Cellular can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. BellSouth Enterprises: The Cellular Billing Project 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.
Developing new processes and practices
– Bellsouth Cellular 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Bellsouth Cellular can use these opportunities to build new business models that can help the communities that Bellsouth Cellular operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Bellsouth Cellular 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 Bellsouth Cellular to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Bellsouth Cellular 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.
Building a culture of innovation
– managers at Bellsouth Cellular 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.
Threats BellSouth Enterprises: The Cellular Billing Project External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study BellSouth Enterprises: The Cellular Billing Project 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. Bellsouth Cellular 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.
Shortening product life cycle
– it is one of the major threat that Bellsouth Cellular is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Bellsouth Cellular can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Bellsouth Cellular.
Technology acceleration in Forth Industrial Revolution
– Bellsouth Cellular has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Bellsouth Cellular 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Bellsouth Cellular with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Bellsouth Cellular in the Technology & Operations sector and impact the bottomline of the organization.
Environmental challenges
– Bellsouth Cellular 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. Bellsouth Cellular can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Increasing wage structure of Bellsouth Cellular
– 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 Bellsouth Cellular.
Regulatory challenges
– Bellsouth Cellular 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study BellSouth Enterprises: The Cellular Billing Project, Bellsouth Cellular 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 .
Consumer confidence and its impact on Bellsouth Cellular 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 BellSouth Enterprises: The Cellular Billing Project 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 BellSouth Enterprises: The Cellular Billing Project 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 BellSouth Enterprises: The Cellular Billing Project 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 BellSouth Enterprises: The Cellular Billing Project 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 BellSouth Enterprises: The Cellular Billing Project 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 Bellsouth Cellular needs to make to build a sustainable competitive advantage.
