Swot Analysis of "Ingersoll Rand: Creating Effective Engineering and Technology Centres (B)" written by Rahul Chandra Sheel, Neharika Vohra includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that W17439 Ingersoll facing as an external strategic factors. Some of the topics covered in Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) case study are - Strategic Management Strategies, Design, Manufacturing, Talent management and Organizational Development.
Some of the macro environment factors that can be used to understand the Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) casestudy better are - – wage bills are increasing, cloud computing is disrupting traditional business models, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, technology disruption, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing household debt because of falling income levels, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Ingersoll Rand: Creating Effective Engineering and Technology Centres (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the W17439 Ingersoll, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which W17439 Ingersoll 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 Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) can be done for the following purposes –
1. Strategic planning using facts provided in Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) case study
2. Improving business portfolio management of W17439 Ingersoll
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of W17439 Ingersoll
Strengths Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of W17439 Ingersoll in Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) Harvard Business Review case study are -
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For W17439 Ingersoll digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. W17439 Ingersoll 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.
Cross disciplinary teams
– Horizontal connected teams at the W17439 Ingersoll 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.
Effective Research and Development (R&D)
– W17439 Ingersoll 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 Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– W17439 Ingersoll is present in almost all the verticals within the industry. This has provided firm in Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) 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.
Sustainable margins compare to other players in Organizational Development industry
– Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) firm has clearly differentiated products in the market place. This has enabled W17439 Ingersoll to fetch slight price premium compare to the competitors in the Organizational Development industry. The sustainable margins have also helped W17439 Ingersoll to invest into research and development (R&D) and innovation.
Training and development
– W17439 Ingersoll has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) 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.
Analytics focus
– W17439 Ingersoll 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 Rahul Chandra Sheel, Neharika Vohra 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.
Superior customer experience
– The customer experience strategy of W17439 Ingersoll in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– W17439 Ingersoll 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 Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that W17439 Ingersoll 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 recruit top talent
– W17439 Ingersoll is one of the leading recruiters in the industry. Managers in the Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Organizational Development field
– W17439 Ingersoll 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 W17439 Ingersoll in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) are -
Low market penetration in new markets
– Outside its home market of W17439 Ingersoll, firm in the HBR case study Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of W17439 Ingersoll products
– To increase the profitability and margins on the products, W17439 Ingersoll 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 Ingersoll Rand: Creating Effective Engineering and Technology Centres (B), it seems that the employees of W17439 Ingersoll 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 decision making process
– As mentioned earlier in the report, W17439 Ingersoll 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. W17439 Ingersoll 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.
Increasing silos among functional specialists
– The organizational structure of W17439 Ingersoll is dominated by functional specialists. It is not different from other players in the Organizational Development segment. W17439 Ingersoll needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help W17439 Ingersoll to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Ingersoll Rand: Creating Effective Engineering and Technology Centres (B), it seems that company is thinking about the frontier risks that can impact Organizational Development 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, W17439 Ingersoll is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) 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 operating costs
– Compare to the competitors, firm in the HBR case study Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) 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 W17439 Ingersoll 's lucrative customers.
High cash cycle compare to competitors
W17439 Ingersoll 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Rahul Chandra Sheel, Neharika Vohra suggests that, W17439 Ingersoll 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 strategic competitive environment developments
– As Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) HBR case study mentions - W17439 Ingersoll 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.
Opportunities Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) | 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 Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) are -
Buying journey improvements
– W17439 Ingersoll can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) 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.
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. W17439 Ingersoll can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– W17439 Ingersoll 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 Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help W17439 Ingersoll to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. W17439 Ingersoll 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. W17439 Ingersoll 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.
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 W17439 Ingersoll 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.
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 W17439 Ingersoll in the consumer business. Now W17439 Ingersoll can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– W17439 Ingersoll 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
– W17439 Ingersoll can develop new processes and procedures in Organizational Development industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, W17439 Ingersoll can use these opportunities to build new business models that can help the communities that W17439 Ingersoll operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for W17439 Ingersoll in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.
Low interest rates
– Even though inflation is raising its head in most developed economies, W17439 Ingersoll 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects W17439 Ingersoll can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for W17439 Ingersoll 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.
Threats Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) are -
Environmental challenges
– W17439 Ingersoll 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. W17439 Ingersoll can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, W17439 Ingersoll 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 Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) .
Shortening product life cycle
– it is one of the major threat that W17439 Ingersoll is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 W17439 Ingersoll business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of W17439 Ingersoll
– 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 W17439 Ingersoll.
Technology acceleration in Forth Industrial Revolution
– W17439 Ingersoll has witnessed rapid integration of technology during Covid-19 in the Organizational Development industry. As one of the leading players in the industry, W17439 Ingersoll needs to keep up with the evolution of technology in the Organizational Development 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 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. W17439 Ingersoll needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Easy access to finance
– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. W17439 Ingersoll can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 W17439 Ingersoll in the Organizational Development sector and impact the bottomline of the organization.
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.
High dependence on third party suppliers
– W17439 Ingersoll 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.
Regulatory challenges
– W17439 Ingersoll 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 Organizational Development industry regulations.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Ingersoll Rand: Creating Effective Engineering and Technology Centres (B), W17439 Ingersoll may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
Weighted SWOT Analysis of Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) 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 Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) 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 Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) 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 Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) 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 Ingersoll Rand: Creating Effective Engineering and Technology Centres (B) 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 W17439 Ingersoll needs to make to build a sustainable competitive advantage.