Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd.

This case presents a supply chain management challenge faced by Hindustan Aeronautics Ltd. (HAL) in one of their aircraft door export project to a leading aircraft manufacturer located outside India. As per the contract, HAL has to deliver each aircraft door in a period specified by the aircraft manufacturer. Delivery of door outside this window attracts a penalty. The protagonist has to make decisions regarding when exactly to start the door's main assembly to overcome variability in the assembly of doors, how much inventory to maintain for 1222 parts that are used in the door assembly, how to manage variability in processing times, how to handle outsourcing, and how to manage parts with shelf life that are used in the door assembly. Students will have to use analytical tools to come up with decisions for the aforementioned questions. The case also provides an opportunity for the students to compare the complex nature of an aerospace supply chain with other industries such as automobiles. The case is suitable for supply chain management course as well as advanced operations management course at MBA as well as for executive program.

Authors :: Unnikrishnan Dinesh Kumar, Arun Manohar, G. N. Sripriya

Topics :: Technology & Operations

Tags :: Business models, Supply chain, Time management, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd." written by Unnikrishnan Dinesh Kumar, Arun Manohar, G. N. Sripriya includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Door Assembly facing as an external strategic factors. Some of the topics covered in Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. case study are - Strategic Management Strategies, Business models, Supply chain, Time management and Technology & Operations.

Some of the macro environment factors that can be used to understand the Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. casestudy better are - – increasing transportation and logistics costs, technology disruption, cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, increasing commodity prices, increasing energy prices, wage bills are increasing, etc

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Introduction to SWOT Analysis of Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd.

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Door Assembly, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Door Assembly 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. can be done for the following purposes –
1. Strategic planning using facts provided in Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. case study
2. Improving business portfolio management of Door Assembly
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 Door Assembly

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Strengths Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Door Assembly in Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. Harvard Business Review case study are -

Training and development

– Door Assembly has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. 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.

Innovation driven organization

– Door Assembly is one of the most innovative firm in sector. Manager in Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Ability to recruit top talent

– Door Assembly is one of the leading recruiters in the industry. Managers in the Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Learning organization

- Door Assembly 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 Door Assembly is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Effective Research and Development (R&D)

– Door Assembly 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 Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Low bargaining power of suppliers

– Suppliers of Door Assembly in the sector have low bargaining power. Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Door Assembly to manage not only supply disruptions but also source products at highly competitive prices.

Digital Transformation in Technology & Operations segment

- digital transformation varies from industry to industry. For Door Assembly digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Door Assembly 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.

Analytics focus

– Door Assembly 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 Unnikrishnan Dinesh Kumar, Arun Manohar, G. N. Sripriya 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.

Strong track record of project management

– Door Assembly is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Organizational Resilience of Door Assembly

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Door Assembly does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Superior customer experience

– The customer experience strategy of Door Assembly in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Successful track record of launching new products

– Door Assembly has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Door Assembly 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.

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Weaknesses Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. are -

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. 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 Door Assembly has relatively successful track record of launching new products.

Aligning sales with marketing

– It come across in the case study Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. can leverage the sales team experience to cultivate customer relationships as Door Assembly is planning to shift buying processes online.

Slow to strategic competitive environment developments

– As Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. HBR case study mentions - Door Assembly 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.

Slow decision making process

– As mentioned earlier in the report, Door Assembly 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. Door Assembly 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.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Door Assembly is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

Low market penetration in new markets

– Outside its home market of Door Assembly, firm in the HBR case study Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

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 Door Assembly supply chain. Even after few cautionary changes mentioned in the HBR case study - Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd., it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Door Assembly vulnerable to further global disruptions in South East Asia.

No frontier risks strategy

– After analyzing the HBR case study Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd., it seems that company is thinking about the frontier risks that can impact Technology & Operations strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd., in the dynamic environment Door Assembly has struggled to respond to the nimble upstart competition. Door Assembly has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Interest costs

– Compare to the competition, Door Assembly 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

Door Assembly 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.

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Opportunities Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. | 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 Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. are -

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. Door Assembly can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Door Assembly 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, Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd., to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Door Assembly 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.

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. Door Assembly can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

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. Door Assembly 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. Door Assembly 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.

Creating value in data economy

– The success of analytics program of Door Assembly has opened avenues for new revenue streams for the organization in the industry. This can help Door Assembly to build a more holistic ecosystem as suggested in the Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. case study. Door Assembly can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Buying journey improvements

– Door Assembly can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.

Building a culture of innovation

– managers at Door Assembly 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.

Low interest rates

– Even though inflation is raising its head in most developed economies, Door Assembly 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.

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 Door Assembly 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.

Leveraging digital technologies

– Door Assembly 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.

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 Door Assembly in the consumer business. Now Door Assembly can target international markets with far fewer capital restrictions requirements than the existing system.

Using analytics as competitive advantage

– Door Assembly 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 Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Door Assembly to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

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Threats Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. are -

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Door Assembly 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 Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. .

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.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Door Assembly 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.

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 Door Assembly in the Technology & Operations sector and impact the bottomline of the organization.

Shortening product life cycle

– it is one of the major threat that Door Assembly is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

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. Door Assembly 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.

Consumer confidence and its impact on Door Assembly 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.

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 Door Assembly.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Door Assembly with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

Regulatory challenges

– Door Assembly needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Technology & Operations industry regulations.

Environmental challenges

– Door Assembly 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. Door Assembly can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd., Door Assembly 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 .

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 Door Assembly business can come under increasing regulations regarding data privacy, data security, etc.

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Weighted SWOT Analysis of Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. 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 Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. 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 Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. 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 Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. 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 Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. 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 Door Assembly needs to make to build a sustainable competitive advantage.

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