Corporatization of Bollywood SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Corporatization of Bollywood
Set in 2016-17, the case describes the evolution of the Hindi movie industry, popularly called Bollywood, in India. Specifically, the case focuses on an exogenous shock that occurred in 2000 when the Government of India formally recognized Bollywood as an 'industry' through a policy change. This change ushered in the corporatization of Bollywood which, in turn, affected the industry's structure. Keeping production companies at center stage, students must analyze whether and how corporatization changed the bargaining power of different stakeholders vis-a-vis production companies. The analysis also helps evaluate how the industry might evolve in the future.
Swot Analysis of "Corporatization of Bollywood" written by Aayush Agarwal, Chaitanya Kansal, Pranav Garg includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bollywood Corporatization facing as an external strategic factors. Some of the topics covered in Corporatization of Bollywood case study are - Strategic Management Strategies, Competitive strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Corporatization of Bollywood casestudy better are - – challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, increasing energy prices, technology disruption, geopolitical disruptions,
there is backlash against globalization, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Corporatization of Bollywood
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Corporatization of Bollywood case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bollywood Corporatization, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bollywood Corporatization 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 Corporatization of Bollywood can be done for the following purposes –
1. Strategic planning using facts provided in Corporatization of Bollywood case study
2. Improving business portfolio management of Bollywood Corporatization
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 Bollywood Corporatization
Strengths Corporatization of Bollywood | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bollywood Corporatization in Corporatization of Bollywood Harvard Business Review case study are -
Sustainable margins compare to other players in Strategy & Execution industry
– Corporatization of Bollywood firm has clearly differentiated products in the market place. This has enabled Bollywood Corporatization to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Bollywood Corporatization to invest into research and development (R&D) and innovation.
Analytics focus
– Bollywood Corporatization 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 Aayush Agarwal, Chaitanya Kansal, Pranav Garg 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.
Highly skilled collaborators
– Bollywood Corporatization 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 Corporatization of Bollywood HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Bollywood Corporatization has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Bollywood Corporatization to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Bollywood Corporatization in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Bollywood Corporatization is one of the most innovative firm in sector. Manager in Corporatization of Bollywood Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Bollywood Corporatization
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Bollywood Corporatization 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 Corporatization of Bollywood 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.
Diverse revenue streams
– Bollywood Corporatization is present in almost all the verticals within the industry. This has provided firm in Corporatization of Bollywood 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.
Training and development
– Bollywood Corporatization has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Corporatization of Bollywood 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.
Effective Research and Development (R&D)
– Bollywood Corporatization 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 Corporatization of Bollywood - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Bollywood Corporatization 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 Bollywood Corporatization is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Corporatization of Bollywood Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Corporatization of Bollywood | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Corporatization of Bollywood are -
Capital Spending Reduction
– Even during the low interest decade, Bollywood Corporatization 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.
No frontier risks strategy
– After analyzing the HBR case study Corporatization of Bollywood, 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.
Lack of clear differentiation of Bollywood Corporatization products
– To increase the profitability and margins on the products, Bollywood Corporatization needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Bollywood Corporatization is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Bollywood Corporatization needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Bollywood Corporatization to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Bollywood Corporatization 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Bollywood Corporatization is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Corporatization of Bollywood can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, firm in the HBR case study Corporatization of Bollywood 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 Bollywood Corporatization 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Corporatization of Bollywood 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 Corporatization of Bollywood can leverage the sales team experience to cultivate customer relationships as Bollywood Corporatization is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Corporatization of Bollywood, it seems that the employees of Bollywood Corporatization don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Low market penetration in new markets
– Outside its home market of Bollywood Corporatization, firm in the HBR case study Corporatization of Bollywood needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Corporatization of Bollywood, in the dynamic environment Bollywood Corporatization has struggled to respond to the nimble upstart competition. Bollywood Corporatization has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Corporatization of Bollywood | 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 Corporatization of Bollywood are -
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. Bollywood Corporatization can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Bollywood Corporatization 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. Bollywood Corporatization 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.
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 Bollywood Corporatization 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Bollywood Corporatization 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, Corporatization of Bollywood, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Bollywood Corporatization 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 Corporatization of Bollywood - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Bollywood Corporatization to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Bollywood Corporatization is facing challenges because of the dominance of functional experts in the organization. Corporatization of Bollywood 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.
Creating value in data economy
– The success of analytics program of Bollywood Corporatization has opened avenues for new revenue streams for the organization in the industry. This can help Bollywood Corporatization to build a more holistic ecosystem as suggested in the Corporatization of Bollywood case study. Bollywood Corporatization can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Bollywood Corporatization to increase its market reach. Bollywood Corporatization 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Bollywood Corporatization can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Bollywood Corporatization 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.
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 Bollywood Corporatization in the consumer business. Now Bollywood Corporatization can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Bollywood Corporatization 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.
Buying journey improvements
– Bollywood Corporatization can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Corporatization of Bollywood 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 Corporatization of Bollywood External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Corporatization of Bollywood are -
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. Bollywood Corporatization can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Bollywood Corporatization business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Bollywood Corporatization 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 Corporatization of Bollywood .
Increasing wage structure of Bollywood Corporatization
– 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 Bollywood Corporatization.
Shortening product life cycle
– it is one of the major threat that Bollywood Corporatization is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Bollywood Corporatization 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
– Bollywood Corporatization 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.
Technology acceleration in Forth Industrial Revolution
– Bollywood Corporatization has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Bollywood Corporatization 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.
Environmental challenges
– Bollywood Corporatization 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. Bollywood Corporatization can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Corporatization of Bollywood, Bollywood Corporatization 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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Bollywood Corporatization 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.
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.
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 Bollywood Corporatization in the Strategy & Execution sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Corporatization of Bollywood 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 Corporatization of Bollywood 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 Corporatization of Bollywood 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 Corporatization of Bollywood 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 Corporatization of Bollywood 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 Bollywood Corporatization needs to make to build a sustainable competitive advantage.
