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 - – competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, cloud computing is disrupting traditional business models, there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , technology disruption, etc

---

---

---

---

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.

---

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

---

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 -

Highly skilled collaborators

– Door Assembly 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 Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

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.

Ability to lead change in Technology & Operations field

– Door Assembly 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 Door Assembly 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

– 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.

High brand equity

– Door Assembly has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Door Assembly to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

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.

Cross disciplinary teams

– Horizontal connected teams at the Door Assembly 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.

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.

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.

Diverse revenue streams

– Door Assembly is present in almost all the verticals within the industry. This has provided firm in Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd. 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.

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.

High switching costs

– The high switching costs that Door Assembly 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.

---

---

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 -

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.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd., is just above the industry average. Door Assembly 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.

High bargaining power of channel partners

– Because of the regulatory requirements, Unnikrishnan Dinesh Kumar, Arun Manohar, G. N. Sripriya suggests that, Door Assembly 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 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.

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.

Capital Spending Reduction

– Even during the low interest decade, Door Assembly 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.

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.

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.

Lack of clear differentiation of Door Assembly products

– To increase the profitability and margins on the products, Door Assembly needs to provide more differentiated products than what it is currently offering in the marketplace.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Delivering Doors in a Window: Supply Chain Management at Hindustan Aeronautics Ltd., it seems that the employees of Door Assembly 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.

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.

---

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 -

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.

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.

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.

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.

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.

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.

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.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Door Assembly can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

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.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Door Assembly can use these opportunities to build new business models that can help the communities that Door Assembly operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.

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.

Developing new processes and practices

– Door Assembly 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.

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.

---

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 -

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.

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.

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.

High dependence on third party suppliers

– Door Assembly 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. Door Assembly needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.

Increasing wage structure of Door Assembly

– 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 Door Assembly.

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.

Stagnating economy with rate increase

– Door Assembly 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.

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. .

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.

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.

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.

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.

---

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.

--- ---