Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u

The case as the title reveals is about a collaborative program called ACE which combines technology, with a social need through a creative business model to empower the autorickshaw driver community to improve their livelihoods. Launched in Bangalore South India, the empowerment of the auto driver community is through paid advertising panels fixed at the back panel of the autos. The autos are monitored with real time feeds and forwarded to advertisers. With traditional advertising media fast losing credibility and patronage by big brands, ACE aimed at providing advertisers visibility, transparency and capabilities to plan and predict campaign outcomes better. The case details how the unique and novel initiative provided a non-disruptive, cross-sector ecosystem for the auto community.

Authors :: P. D. Jose, Menaka Rao

Topics :: Strategy & Execution

Tags :: Social enterprise, Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u" written by P. D. Jose, Menaka Rao includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ace Autorickshaw facing as an external strategic factors. Some of the topics covered in Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u case study are - Strategic Management Strategies, Social enterprise, Social responsibility and Strategy & Execution.

Some of the macro environment factors that can be used to understand the Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, etc

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Introduction to SWOT Analysis of Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ace Autorickshaw, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ace Autorickshaw 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u can be done for the following purposes –
1. Strategic planning using facts provided in Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u case study
2. Improving business portfolio management of Ace Autorickshaw
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 Ace Autorickshaw

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Strengths Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Ace Autorickshaw in Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u Harvard Business Review case study are -

Organizational Resilience of Ace Autorickshaw

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ace Autorickshaw does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Ability to recruit top talent

– Ace Autorickshaw is one of the leading recruiters in the industry. Managers in the Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u 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

– Ace Autorickshaw is one of the most innovative firm in sector. Manager in Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u 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

– Ace Autorickshaw is present in almost all the verticals within the industry. This has provided firm in Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u 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.

Strong track record of project management

– Ace Autorickshaw is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Effective Research and Development (R&D)

– Ace Autorickshaw 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 Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u - 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 Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u 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.

Superior customer experience

– The customer experience strategy of Ace Autorickshaw in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

High brand equity

– Ace Autorickshaw has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ace Autorickshaw to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Digital Transformation in Strategy & Execution segment

- digital transformation varies from industry to industry. For Ace Autorickshaw digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ace Autorickshaw 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.

Sustainable margins compare to other players in Strategy & Execution industry

– Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u firm has clearly differentiated products in the market place. This has enabled Ace Autorickshaw to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Ace Autorickshaw to invest into research and development (R&D) and innovation.

High switching costs

– The high switching costs that Ace Autorickshaw 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.

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Weaknesses Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u are -

Capital Spending Reduction

– Even during the low interest decade, Ace Autorickshaw 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 decision making process

– As mentioned earlier in the report, Ace Autorickshaw 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. Ace Autorickshaw 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.

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 Ace Autorickshaw supply chain. Even after few cautionary changes mentioned in the HBR case study - Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ace Autorickshaw vulnerable to further global disruptions in South East Asia.

Interest costs

– Compare to the competition, Ace Autorickshaw 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.

Increasing silos among functional specialists

– The organizational structure of Ace Autorickshaw is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Ace Autorickshaw needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ace Autorickshaw to focus more on services rather than just following the product oriented approach.

Products dominated business model

– Even though Ace Autorickshaw 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 - Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u should strive to include more intangible value offerings along with its core products and services.

No frontier risks strategy

– After analyzing the HBR case study Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u, 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.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u, is just above the industry average. Ace Autorickshaw 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.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u 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 Ace Autorickshaw has relatively successful track record of launching new products.

Workers concerns about automation

– As automation is fast increasing in the segment, Ace Autorickshaw 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.

Lack of clear differentiation of Ace Autorickshaw products

– To increase the profitability and margins on the products, Ace Autorickshaw needs to provide more differentiated products than what it is currently offering in the marketplace.

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Opportunities Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u | 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 Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u are -

Developing new processes and practices

– Ace Autorickshaw 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.

Leveraging digital technologies

– Ace Autorickshaw 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.

Buying journey improvements

– Ace Autorickshaw can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u 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.

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 Ace Autorickshaw in the consumer business. Now Ace Autorickshaw can target international markets with far fewer capital restrictions requirements than the existing system.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ace Autorickshaw 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 Ace Autorickshaw to hire the very best people irrespective of their geographical location.

Creating value in data economy

– The success of analytics program of Ace Autorickshaw has opened avenues for new revenue streams for the organization in the industry. This can help Ace Autorickshaw to build a more holistic ecosystem as suggested in the Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u case study. Ace Autorickshaw can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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, Ace Autorickshaw can use these opportunities to build new business models that can help the communities that Ace Autorickshaw operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.

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. Ace Autorickshaw can explore opportunities that can attract volunteers and are consistent with its mission and vision.

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. Ace Autorickshaw can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

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. Ace Autorickshaw 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. Ace Autorickshaw 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.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Ace Autorickshaw 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, Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Manufacturing automation

– Ace Autorickshaw 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.

Learning at scale

– Online learning technologies has now opened space for Ace Autorickshaw 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.

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Threats Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u are -

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.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Ace Autorickshaw 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 Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u .

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u, Ace Autorickshaw may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .

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. Ace Autorickshaw can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

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. Ace Autorickshaw 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

– Ace Autorickshaw 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.

Stagnating economy with rate increase

– Ace Autorickshaw 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 Ace Autorickshaw with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

High dependence on third party suppliers

– Ace Autorickshaw 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.

Consumer confidence and its impact on Ace Autorickshaw 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.

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 Ace Autorickshaw in the Strategy & Execution sector and impact the bottomline of the organization.

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 Ace Autorickshaw business can come under increasing regulations regarding data privacy, data security, etc.

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 Ace Autorickshaw.

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Weighted SWOT Analysis of Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u 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 Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u 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 Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u 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 Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u 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 Collaborative Commerce for Empowering Marginalized Communities: The Autorickshaw Community Empowerment (ACE) Ecosystem and t4u 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 Ace Autorickshaw needs to make to build a sustainable competitive advantage.

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