Sunrise Power Limited: Charting Growth in Unexplored Regions SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Sunrise Power Limited: Charting Growth in Unexplored Regions
Sunrise Power, a first-generation mid-sized power and mining company in India, was considering geographical diversification in the African continent. While many African nations were rich in resources, they often lagged in economic indicators, and global companies hesitated to invest in infrastructure due to limited risk appetite. However, this left an opportunity for mid-sized firms such as Sunrise Power, so long as they could attain regulatory support and ensure high returns. Sunrise Power needed to evaluate the complexities in identifying the right market in Southern Africa. This included examining indicators like population, gross domestic product, energy demand forecasts, and electrification capacity. The firm also had to identify the critical success factors and assess the risks in the strategy planning process. Finally, it needed to design an organizational structure for its African venture so as to realize the benefits of diversification. Sanjeev Kumar Prasad is affiliated with XLRI School of Business and Human Resources.
Swot Analysis of "Sunrise Power Limited: Charting Growth in Unexplored Regions" written by Sanjeev Kumar Prasad includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Sunrise Power facing as an external strategic factors. Some of the topics covered in Sunrise Power Limited: Charting Growth in Unexplored Regions case study are - Strategic Management Strategies, Entrepreneurship, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Sunrise Power Limited: Charting Growth in Unexplored Regions casestudy better are - – wage bills are increasing, there is increasing trade war between United States & China, increasing commodity prices, there is backlash against globalization, geopolitical disruptions, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy,
cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Sunrise Power Limited: Charting Growth in Unexplored Regions
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Sunrise Power Limited: Charting Growth in Unexplored Regions case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Sunrise Power, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Sunrise Power 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 Sunrise Power Limited: Charting Growth in Unexplored Regions can be done for the following purposes –
1. Strategic planning using facts provided in Sunrise Power Limited: Charting Growth in Unexplored Regions case study
2. Improving business portfolio management of Sunrise Power
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 Sunrise Power
Strengths Sunrise Power Limited: Charting Growth in Unexplored Regions | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Sunrise Power in Sunrise Power Limited: Charting Growth in Unexplored Regions Harvard Business Review case study are -
High brand equity
– Sunrise Power has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Sunrise Power to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Sunrise Power
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Sunrise Power does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Sunrise Power 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 Sunrise Power Limited: Charting Growth in Unexplored Regions - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Sunrise Power has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Sunrise Power 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.
Innovation driven organization
– Sunrise Power is one of the most innovative firm in sector. Manager in Sunrise Power Limited: Charting Growth in Unexplored Regions Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Sunrise Power is present in almost all the verticals within the industry. This has provided firm in Sunrise Power Limited: Charting Growth in Unexplored Regions 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.
High switching costs
– The high switching costs that Sunrise Power 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
– Sunrise Power is one of the leading recruiters in the industry. Managers in the Sunrise Power Limited: Charting Growth in Unexplored Regions are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Highly skilled collaborators
– Sunrise Power 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 Sunrise Power Limited: Charting Growth in Unexplored Regions HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Sunrise Power in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the Sunrise Power Limited: Charting Growth in Unexplored Regions 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Sunrise Power Limited: Charting Growth in Unexplored Regions firm has clearly differentiated products in the market place. This has enabled Sunrise Power to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Sunrise Power to invest into research and development (R&D) and innovation.
Weaknesses Sunrise Power Limited: Charting Growth in Unexplored Regions | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Sunrise Power Limited: Charting Growth in Unexplored Regions are -
Need for greater diversity
– Sunrise Power 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.
No frontier risks strategy
– After analyzing the HBR case study Sunrise Power Limited: Charting Growth in Unexplored Regions, 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Sunrise Power Limited: Charting Growth in Unexplored Regions, in the dynamic environment Sunrise Power has struggled to respond to the nimble upstart competition. Sunrise Power has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Sunrise Power 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.
Low market penetration in new markets
– Outside its home market of Sunrise Power, firm in the HBR case study Sunrise Power Limited: Charting Growth in Unexplored Regions needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Sunrise Power 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.
Products dominated business model
– Even though Sunrise Power 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 - Sunrise Power Limited: Charting Growth in Unexplored Regions should strive to include more intangible value offerings along with its core products and services.
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 Sunrise Power supply chain. Even after few cautionary changes mentioned in the HBR case study - Sunrise Power Limited: Charting Growth in Unexplored Regions, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Sunrise Power vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study Sunrise Power Limited: Charting Growth in Unexplored Regions 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 Sunrise Power Limited: Charting Growth in Unexplored Regions can leverage the sales team experience to cultivate customer relationships as Sunrise Power is planning to shift buying processes online.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Sunrise Power Limited: Charting Growth in Unexplored Regions 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 Sunrise Power has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Sunrise Power 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.
Opportunities Sunrise Power Limited: Charting Growth in Unexplored Regions | 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 Sunrise Power Limited: Charting Growth in Unexplored Regions are -
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 Sunrise Power in the consumer business. Now Sunrise Power can target international markets with far fewer capital restrictions requirements than the existing system.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Sunrise Power 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. Sunrise Power 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.
Leveraging digital technologies
– Sunrise Power 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Sunrise Power is facing challenges because of the dominance of functional experts in the organization. Sunrise Power Limited: Charting Growth in Unexplored Regions 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Sunrise Power can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Sunrise Power 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.
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. Sunrise Power can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Sunrise Power can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Learning at scale
– Online learning technologies has now opened space for Sunrise Power 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Sunrise Power 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.
Manufacturing automation
– Sunrise Power can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Sunrise Power can use these opportunities to build new business models that can help the communities that Sunrise Power operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Buying journey improvements
– Sunrise Power can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Sunrise Power Limited: Charting Growth in Unexplored Regions 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.
Threats Sunrise Power Limited: Charting Growth in Unexplored Regions External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Sunrise Power Limited: Charting Growth in Unexplored Regions are -
Regulatory challenges
– Sunrise Power 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Sunrise Power 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 Sunrise Power Limited: Charting Growth in Unexplored Regions .
Consumer confidence and its impact on Sunrise Power 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.
Stagnating economy with rate increase
– Sunrise Power 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.
Environmental challenges
– Sunrise Power 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. Sunrise Power can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Sunrise Power can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Sunrise Power is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Sunrise Power
– 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 Sunrise Power.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Sunrise Power 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.
High dependence on third party suppliers
– Sunrise Power 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.
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 Sunrise Power.
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. Sunrise Power needs to understand the core reasons impacting the Strategy & Execution 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. Sunrise Power 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.
Weighted SWOT Analysis of Sunrise Power Limited: Charting Growth in Unexplored Regions 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 Sunrise Power Limited: Charting Growth in Unexplored Regions 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 Sunrise Power Limited: Charting Growth in Unexplored Regions 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 Sunrise Power Limited: Charting Growth in Unexplored Regions 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 Sunrise Power Limited: Charting Growth in Unexplored Regions 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 Sunrise Power needs to make to build a sustainable competitive advantage.