Maha Research Labs: The Turkish Opportunity SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Maha Research Labs: The Turkish Opportunity
Maha Research Labs Private Limited was a growing pharmaceutical company. It ended 2016 with sales worth a??508.4 million at 31.2 per cent growth over the previous year. The company's ambitious goal was to achieve 38 per cent growth and a net revenue of a??700 million in 2017. In May 2017, on receiving a call from a friend in Turkey suggesting he explore the Turkish pharmaceutical market, the managing director of the company was considering doing so. However, he had some doubts, and wondered what the best way to enter the market in Turkey would be. Was his product range suitable for the Turkish market? What were the possible risks? Sandeep Puri is affiliated with Institute of Management Technology, Ghaziabad.
Swot Analysis of "Maha Research Labs: The Turkish Opportunity" written by Sandeep Puri, Elena Poliakova includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Maha Turkish facing as an external strategic factors. Some of the topics covered in Maha Research Labs: The Turkish Opportunity case study are - Strategic Management Strategies, Marketing and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Maha Research Labs: The Turkish Opportunity casestudy better are - – supply chains are disrupted by pandemic , increasing household debt because of falling income levels, increasing energy prices, geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, central banks are concerned over increasing inflation, wage bills are increasing,
increasing transportation and logistics costs, technology disruption, etc
Introduction to SWOT Analysis of Maha Research Labs: The Turkish Opportunity
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Maha Research Labs: The Turkish Opportunity case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Maha Turkish, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Maha Turkish 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 Maha Research Labs: The Turkish Opportunity can be done for the following purposes –
1. Strategic planning using facts provided in Maha Research Labs: The Turkish Opportunity case study
2. Improving business portfolio management of Maha Turkish
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Maha Turkish
Strengths Maha Research Labs: The Turkish Opportunity | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Maha Turkish in Maha Research Labs: The Turkish Opportunity Harvard Business Review case study are -
Training and development
– Maha Turkish has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Maha Research Labs: The Turkish Opportunity Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
High brand equity
– Maha Turkish has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Maha Turkish to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Sustainable margins compare to other players in Sales & Marketing industry
– Maha Research Labs: The Turkish Opportunity firm has clearly differentiated products in the market place. This has enabled Maha Turkish to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Maha Turkish to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Maha Turkish 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.
Successful track record of launching new products
– Maha Turkish has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Maha Turkish 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.
Superior customer experience
– The customer experience strategy of Maha Turkish in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Maha Turkish 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.
Ability to lead change in Sales & Marketing field
– Maha Turkish 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 Maha Turkish 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
– Maha Turkish is one of the leading recruiters in the industry. Managers in the Maha Research Labs: The Turkish Opportunity are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Maha Turkish 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 Maha Research Labs: The Turkish Opportunity HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Maha Turkish is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Maha Turkish is present in almost all the verticals within the industry. This has provided firm in Maha Research Labs: The Turkish Opportunity 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.
Weaknesses Maha Research Labs: The Turkish Opportunity | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Maha Research Labs: The Turkish Opportunity are -
Products dominated business model
– Even though Maha Turkish has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Maha Research Labs: The Turkish Opportunity should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Maha Research Labs: The Turkish Opportunity 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 Maha Research Labs: The Turkish Opportunity can leverage the sales team experience to cultivate customer relationships as Maha Turkish is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Maha Turkish is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Maha Research Labs: The Turkish Opportunity can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Sandeep Puri, Elena Poliakova suggests that, Maha Turkish 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.
Increasing silos among functional specialists
– The organizational structure of Maha Turkish is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Maha Turkish needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Maha Turkish to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Maha Research Labs: The Turkish Opportunity has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Maha Turkish 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Maha Research Labs: The Turkish Opportunity, is just above the industry average. Maha Turkish 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.
Skills based hiring
– The stress on hiring functional specialists at Maha Turkish has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Slow to strategic competitive environment developments
– As Maha Research Labs: The Turkish Opportunity HBR case study mentions - Maha Turkish 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.
High cash cycle compare to competitors
Maha Turkish 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.
Capital Spending Reduction
– Even during the low interest decade, Maha Turkish 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 Maha Research Labs: The Turkish Opportunity | 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 Maha Research Labs: The Turkish Opportunity are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Maha Turkish 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, Maha Research Labs: The Turkish Opportunity, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Maha Turkish 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 Sales & Marketing segment.
Low interest rates
– Even though inflation is raising its head in most developed economies, Maha Turkish 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.
Using analytics as competitive advantage
– Maha Turkish 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 Maha Research Labs: The Turkish Opportunity - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Maha Turkish to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Maha Turkish can use these opportunities to build new business models that can help the communities that Maha Turkish operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
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. Maha Turkish can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Maha Turkish 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Maha Turkish 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
– Maha Turkish can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Maha Research Labs: The Turkish Opportunity 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.
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 Maha Turkish in the consumer business. Now Maha Turkish can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Maha Turkish can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing 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.
Creating value in data economy
– The success of analytics program of Maha Turkish has opened avenues for new revenue streams for the organization in the industry. This can help Maha Turkish to build a more holistic ecosystem as suggested in the Maha Research Labs: The Turkish Opportunity case study. Maha Turkish can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Maha Turkish to increase its market reach. Maha Turkish will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Threats Maha Research Labs: The Turkish Opportunity External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Maha Research Labs: The Turkish Opportunity are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Maha Turkish 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 Maha Research Labs: The Turkish Opportunity .
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. Maha Turkish 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.
Technology acceleration in Forth Industrial Revolution
– Maha Turkish has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Maha Turkish needs to keep up with the evolution of technology in the Sales & Marketing 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.
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 Maha Turkish in the Sales & Marketing sector and impact the bottomline of the organization.
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 Maha Turkish business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Maha Turkish 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.
Environmental challenges
– Maha Turkish 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. Maha Turkish can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Increasing wage structure of Maha Turkish
– 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 Maha Turkish.
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. Maha Turkish needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Maha Research Labs: The Turkish Opportunity, Maha Turkish may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
Stagnating economy with rate increase
– Maha Turkish 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 Maha Turkish.
Weighted SWOT Analysis of Maha Research Labs: The Turkish Opportunity 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 Maha Research Labs: The Turkish Opportunity 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 Maha Research Labs: The Turkish Opportunity 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 Maha Research Labs: The Turkish Opportunity 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 Maha Research Labs: The Turkish Opportunity 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 Maha Turkish needs to make to build a sustainable competitive advantage.