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 - – geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, increasing transportation and logistics costs,
there is increasing trade war between United States & China, there is backlash against globalization, 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 -
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.
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.
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.
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.
Strong track record of project management
– Tttech Kopetz is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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.
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.
Operational resilience
– The operational resilience strategy in the TTTech in 2017: When Market and Technology Trends Align with Company Capabilities Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
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.
Diverse revenue streams
– Tttech Kopetz is present in almost all the verticals within the industry. This has provided firm in TTTech in 2017: When Market and Technology Trends Align with Company Capabilities 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.
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.
Training and development
– Tttech Kopetz has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in TTTech in 2017: When Market and Technology Trends Align with Company Capabilities 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.
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 -
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.
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 cash cycle compare to competitors
Tttech Kopetz 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 operating costs
– Compare to the competitors, firm in the HBR case study TTTech in 2017: When Market and Technology Trends Align with Company Capabilities 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 Tttech Kopetz 's lucrative customers.
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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the TTTech in 2017: When Market and Technology Trends Align with Company Capabilities HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Tttech Kopetz has relatively successful track record of launching new products.
Skills based hiring
– The stress on hiring functional specialists at Tttech Kopetz 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.
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.
Increasing silos among functional specialists
– The organizational structure of Tttech Kopetz is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Tttech Kopetz needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Tttech Kopetz to focus more on services rather than just following the product oriented approach.
Aligning sales with marketing
– It come across in the case study TTTech in 2017: When Market and Technology Trends Align with Company Capabilities 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 TTTech in 2017: When Market and Technology Trends Align with Company Capabilities can leverage the sales team experience to cultivate customer relationships as Tttech Kopetz is planning to shift buying processes online.
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.
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 -
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Tttech Kopetz 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, TTTech in 2017: When Market and Technology Trends Align with Company Capabilities, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Tttech Kopetz in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Using analytics as competitive advantage
– Tttech Kopetz 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 TTTech in 2017: When Market and Technology Trends Align with Company Capabilities - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Tttech Kopetz to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Tttech Kopetz can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Tttech Kopetz to increase its market reach. Tttech Kopetz 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.
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.
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.
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.
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.
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.
Building a culture of innovation
– managers at Tttech Kopetz 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 Leadership & Managing People segment.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Tttech Kopetz can use these opportunities to build new business models that can help the communities that Tttech Kopetz operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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 -
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.
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.
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.
Technology acceleration in Forth Industrial Revolution
– Tttech Kopetz has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Tttech Kopetz needs to keep up with the evolution of technology in the Leadership & Managing People 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 dependence on third party suppliers
– Tttech Kopetz 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. Tttech Kopetz needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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.
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.
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 Tttech Kopetz in the Leadership & Managing People sector and impact the bottomline of the organization.
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 .
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 .
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.
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.
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.