HCL Engineering R&D Services: First Flight into the Future SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of HCL Engineering R&D Services: First Flight into the Future
The president of the Engineering and Research and Development Services (ERS) division at HCL Technologies Ltd. (HCL) congratulated the Boeing Company (Boeing) on the maiden flight of its 787 Dreamliner jet airliner on December 15, 2009. Out of the many companies working on the 787 Dreamliner project, HCL was the only Indian information technology services firm to be selected for the project. As part of the project, HCL worked closely with Boeing, and some of Boeing's tier-one suppliers, in developing various onboard mission-critical software systems, such as the electrical power generation and distribution system and the pilot controls. The multi-million dollar deal had important implications for HCL and its future in the US$644.3 billion aerospace and defence industry. HCL ERS had to make a crucial strategic choice: should the division continue to offer great value to its customers by helping them optimize costs and improve delivery time, or should it move up the value chain by investing more in research and development capabilities, thereby emerging as a leader rather than a follower in this highly complex and technology-driven industry? Rahul Kumar Sett is affiliated with Indian Institute of Management Nagpur.
Swot Analysis of "HCL Engineering R&D Services: First Flight into the Future" written by Rahul Kumar Sett includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hcl Ers facing as an external strategic factors. Some of the topics covered in HCL Engineering R&D Services: First Flight into the Future case study are - Strategic Management Strategies, Supply chain and Strategy & Execution.
Some of the macro environment factors that can be used to understand the HCL Engineering R&D Services: First Flight into the Future casestudy better are - – geopolitical disruptions, there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs,
digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, etc
Introduction to SWOT Analysis of HCL Engineering R&D Services: First Flight into the Future
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in HCL Engineering R&D Services: First Flight into the Future case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hcl Ers, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hcl Ers 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 HCL Engineering R&D Services: First Flight into the Future can be done for the following purposes –
1. Strategic planning using facts provided in HCL Engineering R&D Services: First Flight into the Future case study
2. Improving business portfolio management of Hcl Ers
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Hcl Ers
Strengths HCL Engineering R&D Services: First Flight into the Future | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hcl Ers in HCL Engineering R&D Services: First Flight into the Future Harvard Business Review case study are -
Diverse revenue streams
– Hcl Ers is present in almost all the verticals within the industry. This has provided firm in HCL Engineering R&D Services: First Flight into the Future 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.
Ability to recruit top talent
– Hcl Ers is one of the leading recruiters in the industry. Managers in the HCL Engineering R&D Services: First Flight into the Future 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
– Hcl Ers is one of the most innovative firm in sector. Manager in HCL Engineering R&D Services: First Flight into the Future Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Hcl Ers is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Hcl Ers
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Hcl Ers does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the HCL Engineering R&D Services: First Flight into the Future 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.
Highly skilled collaborators
– Hcl Ers 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 HCL Engineering R&D Services: First Flight into the Future HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Hcl Ers has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in HCL Engineering R&D Services: First Flight into the Future 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.
Sustainable margins compare to other players in Strategy & Execution industry
– HCL Engineering R&D Services: First Flight into the Future firm has clearly differentiated products in the market place. This has enabled Hcl Ers to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Hcl Ers to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Hcl Ers 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.
Successful track record of launching new products
– Hcl Ers has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hcl Ers 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.
Learning organization
- Hcl Ers is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Hcl Ers is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in HCL Engineering R&D Services: First Flight into the Future Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses HCL Engineering R&D Services: First Flight into the Future | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of HCL Engineering R&D Services: First Flight into the Future are -
Skills based hiring
– The stress on hiring functional specialists at Hcl Ers 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Rahul Kumar Sett suggests that, Hcl Ers 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the HCL Engineering R&D Services: First Flight into the Future 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 Hcl Ers has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Hcl Ers needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
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 Hcl Ers supply chain. Even after few cautionary changes mentioned in the HBR case study - HCL Engineering R&D Services: First Flight into the Future, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hcl Ers vulnerable to further global disruptions in South East Asia.
Products dominated business model
– Even though Hcl Ers 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 - HCL Engineering R&D Services: First Flight into the Future should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study HCL Engineering R&D Services: First Flight into the Future 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 Hcl Ers 's lucrative customers.
No frontier risks strategy
– After analyzing the HBR case study HCL Engineering R&D Services: First Flight into the Future, it seems that company is thinking about the frontier risks that can impact Strategy & Execution 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.
Capital Spending Reduction
– Even during the low interest decade, Hcl Ers 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.
Slow to strategic competitive environment developments
– As HCL Engineering R&D Services: First Flight into the Future HBR case study mentions - Hcl Ers 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.
Increasing silos among functional specialists
– The organizational structure of Hcl Ers is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Hcl Ers needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Hcl Ers to focus more on services rather than just following the product oriented approach.
Opportunities HCL Engineering R&D Services: First Flight into the Future | 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 HCL Engineering R&D Services: First Flight into the Future are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Hcl Ers is facing challenges because of the dominance of functional experts in the organization. HCL Engineering R&D Services: First Flight into the Future 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.
Buying journey improvements
– Hcl Ers can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. HCL Engineering R&D Services: First Flight into the Future 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.
Developing new processes and practices
– Hcl Ers can develop new processes and procedures in Strategy & Execution 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, Hcl Ers can use these opportunities to build new business models that can help the communities that Hcl Ers operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Hcl Ers in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Building a culture of innovation
– managers at Hcl Ers 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 Strategy & Execution segment.
Loyalty marketing
– Hcl Ers 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Hcl Ers to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Hcl Ers to hire the very best people irrespective of their geographical location.
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 Hcl Ers in the consumer business. Now Hcl Ers 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 Strategy & Execution industry, but it has also influenced the consumer preferences. Hcl Ers can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for Hcl Ers 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.
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. Hcl Ers can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Hcl Ers 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 HCL Engineering R&D Services: First Flight into the Future External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study HCL Engineering R&D Services: First Flight into the Future 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Hcl Ers in the Strategy & Execution industry. The Strategy & Execution 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.
Consumer confidence and its impact on Hcl Ers 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 acceleration in Forth Industrial Revolution
– Hcl Ers has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Hcl Ers needs to keep up with the evolution of technology in the Strategy & Execution 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. Hcl Ers needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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 Hcl Ers business can come under increasing regulations regarding data privacy, data security, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Hcl Ers with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Hcl Ers 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 HCL Engineering R&D Services: First Flight into the Future .
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 Hcl Ers.
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 Hcl Ers in the Strategy & Execution sector and impact the bottomline of the organization.
Increasing wage structure of Hcl Ers
– 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 Hcl Ers.
Regulatory challenges
– Hcl Ers 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 Strategy & Execution industry regulations.
Weighted SWOT Analysis of HCL Engineering R&D Services: First Flight into the Future 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 HCL Engineering R&D Services: First Flight into the Future 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 HCL Engineering R&D Services: First Flight into the Future 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 HCL Engineering R&D Services: First Flight into the Future 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 HCL Engineering R&D Services: First Flight into the Future 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 Hcl Ers needs to make to build a sustainable competitive advantage.