TTTech in 2017: When Market and Technology Trends Align with Company Capabilities SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of TTTech in 2017: When Market and Technology Trends Align with Company Capabilities
TTTech in 2017: When Market and Technology Trends Align with Company Capabilities" examines the Austrian technology company TTTech. A global leader in robust networked safety controls, TTTech developed hardware and software solutions that improved the safety and reliability of embedded electronic systems across a variety of industries, including automotive, manufacturing/industrial, aerospace, energy, and off-highway machinery. In 2017, cofounders Georg Kopetz and Dr. Stefan Poledna were thrilled with the state of TTTech, which generated nearly $100 million in annual revenue.For 20 years, TTTech had honed its innovative suite of technology solutions, developing cutting-edge products for customers such as Audi, General Electric, Cisco, Boeing, Airbus, and HYDAC International. Yet the two cofounders were perhaps even more excited by a confluence of market and technology trends in TTTech's favor-trends that aligned perfectly with TTTech's products and capabilities. One of the most pronounced tailwinds was the race towards fully autonomous vehicles. Within the industry, there was growing consensus that cars would become fully autonomous in the next decade or two. Given the complexity associated with developing the networks and electronic systems that would enable autonomous vehicles, manufacturers looked to companies like TTTech to provide the underlying technology needed to turn this vision into a reality. Yet the trend towards increasingly complex electronic systems was not restricted to the automotive industry. Across every industry, physical devices, machines, vehicles, and buildings were becoming embedded with electronics that allowed for the collection and exchange of data, all of which enhanced automation. Against this backdrop, Kopetz and Poledna believed that TTTech could reach more than $200 million in revenue by 2020. Yet achieving this success would not be without its challenges. TTTech would have to align itself with the right strategic and financial partners, continue to hire top managerial talent, and compete in multiple industries, each of which had its own set of unique regulations and standards. TTTech was in a strong position to achieve explosive growth, yet Kopetz and Poledna would have to navigate several hurdles in order to realize that growth.
Swot Analysis of "TTTech in 2017: When Market and Technology Trends Align with Company Capabilities" written by Robert E. Siegel, Ryan Kissick includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Tttech Kopetz facing as an external strategic factors. Some of the topics covered in TTTech in 2017: When Market and Technology Trends Align with Company Capabilities case study are - Strategic Management Strategies, Growth strategy, International business, Internet, Manufacturing, Marketing and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the TTTech in 2017: When Market and Technology Trends Align with Company Capabilities casestudy better are - – central banks are concerned over increasing inflation, technology disruption, there is backlash against globalization, there is increasing trade war between United States & China, increasing commodity prices, increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of TTTech in 2017: When Market and Technology Trends Align with Company Capabilities
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in TTTech in 2017: When Market and Technology Trends Align with Company Capabilities case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Tttech Kopetz, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Tttech Kopetz 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 TTTech in 2017: When Market and Technology Trends Align with Company Capabilities can be done for the following purposes –
1. Strategic planning using facts provided in TTTech in 2017: When Market and Technology Trends Align with Company Capabilities case study
2. Improving business portfolio management of Tttech Kopetz
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Tttech Kopetz
Strengths TTTech in 2017: When Market and Technology Trends Align with Company Capabilities | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Tttech Kopetz in TTTech in 2017: When Market and Technology Trends Align with Company Capabilities Harvard Business Review case study are -
Ability to lead change in Leadership & Managing People field
– Tttech Kopetz 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 Tttech Kopetz in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Tttech Kopetz digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Tttech Kopetz 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.
Low bargaining power of suppliers
– Suppliers of Tttech Kopetz in the sector have low bargaining power. TTTech in 2017: When Market and Technology Trends Align with Company Capabilities has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Tttech Kopetz to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Tttech Kopetz 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 TTTech in 2017: When Market and Technology Trends Align with Company Capabilities - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Tttech Kopetz has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Tttech Kopetz to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Tttech Kopetz is one of the leading recruiters in the industry. Managers in the TTTech in 2017: When Market and Technology Trends Align with Company Capabilities are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Tttech Kopetz is one of the most innovative firm in sector. Manager in TTTech in 2017: When Market and Technology Trends Align with Company Capabilities Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Leadership & Managing People industry
– TTTech in 2017: When Market and Technology Trends Align with Company Capabilities firm has clearly differentiated products in the market place. This has enabled Tttech Kopetz to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Tttech Kopetz to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Tttech Kopetz has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Tttech Kopetz 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 Tttech Kopetz 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 Tttech Kopetz has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Analytics focus
– Tttech Kopetz 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 Robert E. Siegel, Ryan Kissick 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.
Weaknesses TTTech in 2017: When Market and Technology Trends Align with Company Capabilities | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of TTTech in 2017: When Market and Technology Trends Align with Company Capabilities are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study TTTech in 2017: When Market and Technology Trends Align with Company Capabilities, it seems that the employees of Tttech Kopetz 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.
Low market penetration in new markets
– Outside its home market of Tttech Kopetz, firm in the HBR case study TTTech in 2017: When Market and Technology Trends Align with Company Capabilities needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
No frontier risks strategy
– After analyzing the HBR case study TTTech in 2017: When Market and Technology Trends Align with Company Capabilities, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study TTTech in 2017: When Market and Technology Trends Align with Company Capabilities, is just above the industry average. Tttech Kopetz 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.
Need for greater diversity
– Tttech Kopetz has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Products dominated business model
– Even though Tttech Kopetz 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 - TTTech in 2017: When Market and Technology Trends Align with Company Capabilities should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As TTTech in 2017: When Market and Technology Trends Align with Company Capabilities HBR case study mentions - Tttech Kopetz 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, Tttech Kopetz 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. Tttech Kopetz 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.
Interest costs
– Compare to the competition, Tttech Kopetz 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study TTTech in 2017: When Market and Technology Trends Align with Company Capabilities, in the dynamic environment Tttech Kopetz has struggled to respond to the nimble upstart competition. Tttech Kopetz has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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 Tttech Kopetz supply chain. Even after few cautionary changes mentioned in the HBR case study - TTTech in 2017: When Market and Technology Trends Align with Company Capabilities, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Tttech Kopetz vulnerable to further global disruptions in South East Asia.
Opportunities TTTech in 2017: When Market and Technology Trends Align with Company Capabilities | 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 TTTech in 2017: When Market and Technology Trends Align with Company Capabilities are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Tttech Kopetz 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.
Creating value in data economy
– The success of analytics program of Tttech Kopetz has opened avenues for new revenue streams for the organization in the industry. This can help Tttech Kopetz to build a more holistic ecosystem as suggested in the TTTech in 2017: When Market and Technology Trends Align with Company Capabilities case study. Tttech Kopetz can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Tttech Kopetz 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Tttech Kopetz is facing challenges because of the dominance of functional experts in the organization. TTTech in 2017: When Market and Technology Trends Align with Company Capabilities case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Manufacturing automation
– Tttech Kopetz can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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.
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 Tttech Kopetz 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.
Loyalty marketing
– Tttech Kopetz 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Tttech Kopetz 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 Tttech Kopetz in the consumer business. Now Tttech Kopetz can target international markets with far fewer capital restrictions requirements than the existing system.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Tttech Kopetz can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Tttech Kopetz can develop new processes and procedures in Leadership & Managing People 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.
Buying journey improvements
– Tttech Kopetz can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. TTTech in 2017: When Market and Technology Trends Align with Company Capabilities 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.
Leveraging digital technologies
– Tttech Kopetz 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.
Threats TTTech in 2017: When Market and Technology Trends Align with Company Capabilities External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study TTTech in 2017: When Market and Technology Trends Align with Company Capabilities are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Tttech Kopetz 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 TTTech in 2017: When Market and Technology Trends Align with Company Capabilities .
Environmental challenges
– Tttech Kopetz 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. Tttech Kopetz can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Consumer confidence and its impact on Tttech Kopetz 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.
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.
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.
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 Tttech Kopetz.
Stagnating economy with rate increase
– Tttech Kopetz 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Tttech Kopetz with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study TTTech in 2017: When Market and Technology Trends Align with Company Capabilities, Tttech Kopetz may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Tttech Kopetz can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Tttech Kopetz 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 Leadership & Managing People industry regulations.
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. Tttech Kopetz 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Tttech Kopetz in the Leadership & Managing People industry. The Leadership & Managing People 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.
Weighted SWOT Analysis of TTTech in 2017: When Market and Technology Trends Align with Company Capabilities 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 TTTech in 2017: When Market and Technology Trends Align with Company Capabilities 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 TTTech in 2017: When Market and Technology Trends Align with Company Capabilities 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 TTTech in 2017: When Market and Technology Trends Align with Company Capabilities 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 TTTech in 2017: When Market and Technology Trends Align with Company Capabilities 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 Tttech Kopetz needs to make to build a sustainable competitive advantage.
