TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite
TSAT A/S is a small, global satellite communications manufacturer based in Oslo, Norway. The company is a niche player, specializing in VSAT (very small aperture terminal) satellite networks for mostly SCADA (supervisory control and data acquisition) applications. The case is written from the perspective of the marketing manager for Southern Europe and Latin America. The company is looking to expand into Latin America--the second fastest growing market in the world for VSAT applications. The marketing manager has identified three possible means by which to do so, and must decide which option is best. This case is useful for introducing satellite communications technology and for discussing channel choices and the diffusion of technological products. As such, it is best suited for undergraduate and graduate courses in data or telecommunications and marketing strategy.
Swot Analysis of "TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite" written by Michael Parent, Mike Wade includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Satellite Tsat facing as an external strategic factors. Some of the topics covered in TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite case study are - Strategic Management Strategies, Growth strategy, Marketing, Technology and Technology & Operations.
Some of the macro environment factors that can be used to understand the TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite casestudy better are - – increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, there is increasing trade war between United States & China,
increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Satellite Tsat, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Satellite Tsat 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 TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite can be done for the following purposes –
1. Strategic planning using facts provided in TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite case study
2. Improving business portfolio management of Satellite Tsat
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 Satellite Tsat
Strengths TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Satellite Tsat in TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite Harvard Business Review case study are -
High brand equity
– Satellite Tsat has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Satellite Tsat to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Technology & Operations field
– Satellite Tsat 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 Satellite Tsat in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Satellite Tsat is one of the leading recruiters in the industry. Managers in the TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite 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.
High switching costs
– The high switching costs that Satellite Tsat 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.
Analytics focus
– Satellite Tsat 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 Michael Parent, Mike Wade 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.
Learning organization
- Satellite Tsat 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 Satellite Tsat is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Satellite Tsat has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite 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.
Highly skilled collaborators
– Satellite Tsat 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 TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Satellite Tsat is one of the most innovative firm in sector. Manager in TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Satellite Tsat in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Satellite Tsat digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Satellite Tsat 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.
Weaknesses TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite are -
High bargaining power of channel partners
– Because of the regulatory requirements, Michael Parent, Mike Wade suggests that, Satellite Tsat 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Satellite Tsat is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Satellite Tsat 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.
Increasing silos among functional specialists
– The organizational structure of Satellite Tsat is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Satellite Tsat needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Satellite Tsat to focus more on services rather than just following the product oriented approach.
Workers concerns about automation
– As automation is fast increasing in the segment, Satellite Tsat 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 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 Satellite Tsat supply chain. Even after few cautionary changes mentioned in the HBR case study - TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Satellite Tsat vulnerable to further global disruptions in South East Asia.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite 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 Satellite Tsat has relatively successful track record of launching new products.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite, is just above the industry average. Satellite Tsat 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 TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite, in the dynamic environment Satellite Tsat has struggled to respond to the nimble upstart competition. Satellite Tsat has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Satellite Tsat products
– To increase the profitability and margins on the products, Satellite Tsat needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Satellite Tsat 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.
Opportunities TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite | 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 TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Satellite Tsat can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Satellite Tsat 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.
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. Satellite Tsat 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. Satellite Tsat 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.
Using analytics as competitive advantage
– Satellite Tsat 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 TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Satellite Tsat to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Satellite Tsat can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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 Satellite Tsat 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Satellite Tsat 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, TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Satellite Tsat 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.
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 Satellite Tsat in the consumer business. Now Satellite Tsat can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Satellite Tsat 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 Satellite Tsat to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Satellite Tsat can use these opportunities to build new business models that can help the communities that Satellite Tsat operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Loyalty marketing
– Satellite Tsat 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.
Developing new processes and practices
– Satellite Tsat 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.
Threats TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Satellite Tsat 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 TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Satellite Tsat 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.
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 Satellite Tsat business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Satellite Tsat is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Satellite Tsat has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Satellite Tsat 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.
High dependence on third party suppliers
– Satellite Tsat 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.
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. Satellite Tsat needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Environmental challenges
– Satellite Tsat 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. Satellite Tsat can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Stagnating economy with rate increase
– Satellite Tsat 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.
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.
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 Satellite Tsat.
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. Satellite Tsat 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.
Weighted SWOT Analysis of TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite 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 TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite 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 TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite 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 TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite 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 TSAT A/S: Launching Telemetry and Low Rate Data Communications via Satellite 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 Satellite Tsat needs to make to build a sustainable competitive advantage.
