PrimeStone Capital and dormakaba SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of PrimeStone Capital and dormakaba
London-based activist hedge fund PrimeStone Capital identifies a potential investment in Swiss security company Kaba. PrimeStone believes that the company is undervalued because it has been pushing back various financial targets, and thinks it can help by proposing a new, incentivized executive compensation plan. The company's performance improves, and PrimeStone needs to decide whether its presence can continue to add value or if it should exit the investment.
Swot Analysis of "PrimeStone Capital and dormakaba" written by Suraj Srinivasan, Quinn Pitcher includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Primestone Dormakaba facing as an external strategic factors. Some of the topics covered in PrimeStone Capital and dormakaba case study are - Strategic Management Strategies, Financial management, Growth strategy, Organizational culture and Finance & Accounting.
Some of the macro environment factors that can be used to understand the PrimeStone Capital and dormakaba casestudy better are - – technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, wage bills are increasing, increasing government debt because of Covid-19 spendings, increasing energy prices, supply chains are disrupted by pandemic ,
increasing commodity prices, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of PrimeStone Capital and dormakaba
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in PrimeStone Capital and dormakaba case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Primestone Dormakaba, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Primestone Dormakaba 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 PrimeStone Capital and dormakaba can be done for the following purposes –
1. Strategic planning using facts provided in PrimeStone Capital and dormakaba case study
2. Improving business portfolio management of Primestone Dormakaba
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Primestone Dormakaba
Strengths PrimeStone Capital and dormakaba | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Primestone Dormakaba in PrimeStone Capital and dormakaba Harvard Business Review case study are -
High brand equity
– Primestone Dormakaba has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Primestone Dormakaba to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Primestone Dormakaba has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Primestone Dormakaba 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.
Digital Transformation in Finance & Accounting segment
- digital transformation varies from industry to industry. For Primestone Dormakaba digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Primestone Dormakaba 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.
Cross disciplinary teams
– Horizontal connected teams at the Primestone Dormakaba are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
High switching costs
– The high switching costs that Primestone Dormakaba 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.
Low bargaining power of suppliers
– Suppliers of Primestone Dormakaba in the sector have low bargaining power. PrimeStone Capital and dormakaba has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Primestone Dormakaba to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Primestone Dormakaba is present in almost all the verticals within the industry. This has provided firm in PrimeStone Capital and dormakaba 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.
Effective Research and Development (R&D)
– Primestone Dormakaba 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 PrimeStone Capital and dormakaba - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Finance & Accounting industry
– PrimeStone Capital and dormakaba firm has clearly differentiated products in the market place. This has enabled Primestone Dormakaba to fetch slight price premium compare to the competitors in the Finance & Accounting industry. The sustainable margins have also helped Primestone Dormakaba to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Primestone Dormakaba is one of the leading recruiters in the industry. Managers in the PrimeStone Capital and dormakaba are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Primestone Dormakaba has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in PrimeStone Capital and dormakaba 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.
Strong track record of project management
– Primestone Dormakaba is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses PrimeStone Capital and dormakaba | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of PrimeStone Capital and dormakaba are -
Interest costs
– Compare to the competition, Primestone Dormakaba 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.
Slow decision making process
– As mentioned earlier in the report, Primestone Dormakaba 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. Primestone Dormakaba 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 bargaining power of channel partners
– Because of the regulatory requirements, Suraj Srinivasan, Quinn Pitcher suggests that, Primestone Dormakaba 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.
Increasing silos among functional specialists
– The organizational structure of Primestone Dormakaba is dominated by functional specialists. It is not different from other players in the Finance & Accounting segment. Primestone Dormakaba needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Primestone Dormakaba to focus more on services rather than just following the product oriented approach.
Slow to strategic competitive environment developments
– As PrimeStone Capital and dormakaba HBR case study mentions - Primestone Dormakaba 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.
High operating costs
– Compare to the competitors, firm in the HBR case study PrimeStone Capital and dormakaba 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 Primestone Dormakaba 's lucrative customers.
Aligning sales with marketing
– It come across in the case study PrimeStone Capital and dormakaba 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 PrimeStone Capital and dormakaba can leverage the sales team experience to cultivate customer relationships as Primestone Dormakaba is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Primestone Dormakaba is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study PrimeStone Capital and dormakaba can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study PrimeStone Capital and dormakaba, is just above the industry average. Primestone Dormakaba 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.
Need for greater diversity
– Primestone Dormakaba 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Primestone Dormakaba 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 PrimeStone Capital and dormakaba | 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 PrimeStone Capital and dormakaba are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Primestone Dormakaba is facing challenges because of the dominance of functional experts in the organization. PrimeStone Capital and dormakaba 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
– Primestone Dormakaba can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. PrimeStone Capital and dormakaba 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 Primestone Dormakaba in the consumer business. Now Primestone Dormakaba 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 Primestone Dormakaba 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 Primestone Dormakaba to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Primestone Dormakaba 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.
Better consumer reach
– The expansion of the 5G network will help Primestone Dormakaba to increase its market reach. Primestone Dormakaba 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.
Creating value in data economy
– The success of analytics program of Primestone Dormakaba has opened avenues for new revenue streams for the organization in the industry. This can help Primestone Dormakaba to build a more holistic ecosystem as suggested in the PrimeStone Capital and dormakaba case study. Primestone Dormakaba can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Primestone Dormakaba 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Primestone Dormakaba in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Developing new processes and practices
– Primestone Dormakaba can develop new processes and procedures in Finance & Accounting 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 Finance & Accounting industry, but it has also influenced the consumer preferences. Primestone Dormakaba can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Primestone Dormakaba 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 Finance & Accounting segment.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Primestone Dormakaba 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, PrimeStone Capital and dormakaba, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats PrimeStone Capital and dormakaba External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study PrimeStone Capital and dormakaba are -
Environmental challenges
– Primestone Dormakaba 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. Primestone Dormakaba can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Primestone Dormakaba in the Finance & Accounting industry. The Finance & Accounting 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.
Shortening product life cycle
– it is one of the major threat that Primestone Dormakaba is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Primestone Dormakaba business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Primestone Dormakaba
– 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 Primestone Dormakaba.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Primestone Dormakaba with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Primestone Dormakaba 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.
Regulatory challenges
– Primestone Dormakaba 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 Finance & Accounting industry regulations.
Stagnating economy with rate increase
– Primestone Dormakaba 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.
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.
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 Primestone Dormakaba.
Technology acceleration in Forth Industrial Revolution
– Primestone Dormakaba has witnessed rapid integration of technology during Covid-19 in the Finance & Accounting industry. As one of the leading players in the industry, Primestone Dormakaba needs to keep up with the evolution of technology in the Finance & Accounting sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
High dependence on third party suppliers
– Primestone Dormakaba 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.
Weighted SWOT Analysis of PrimeStone Capital and dormakaba 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 PrimeStone Capital and dormakaba 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 PrimeStone Capital and dormakaba 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 PrimeStone Capital and dormakaba 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 PrimeStone Capital and dormakaba 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 Primestone Dormakaba needs to make to build a sustainable competitive advantage.
