Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A)
A large, lucrative power plant is negotiated for construction/operation by an American power company in India's evolving privatized power sector. The process of incorporating the project is captured in this case. The American company will own and operate the plant in India, which will sell power to India.
Authors :: V. Kasturi Rangan, Krishna G. Palepu, Sarayu Srinivasan, Anu Bhasin
Swot Analysis of "Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A)" written by V. Kasturi Rangan, Krishna G. Palepu, Sarayu Srinivasan, Anu Bhasin includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Power India facing as an external strategic factors. Some of the topics covered in Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) case study are - Strategic Management Strategies, Economy, Government, Marketing, Negotiations and Global Business.
Some of the macro environment factors that can be used to understand the Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) casestudy better are - – central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, wage bills are increasing, there is backlash against globalization, increasing household debt because of falling income levels,
increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Power India, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Power India 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 Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) can be done for the following purposes –
1. Strategic planning using facts provided in Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) case study
2. Improving business portfolio management of Power India
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Power India
Strengths Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Power India in Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) Harvard Business Review case study are -
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Power India digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Power India 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.
Low bargaining power of suppliers
– Suppliers of Power India in the sector have low bargaining power. Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Power India to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Global Business field
– Power India is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Power India in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Power India 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 Power India is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Power India has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Power India 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.
Training and development
– Power India has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) 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.
Cross disciplinary teams
– Horizontal connected teams at the Power India 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.
Diverse revenue streams
– Power India is present in almost all the verticals within the industry. This has provided firm in Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) 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.
Organizational Resilience of Power India
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Power India does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Power India is one of the leading recruiters in the industry. Managers in the Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Global Business industry
– Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) firm has clearly differentiated products in the market place. This has enabled Power India to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Power India to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) 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.
Weaknesses Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A), it seems that the employees of Power India 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.
Need for greater diversity
– Power India 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.
Low market penetration in new markets
– Outside its home market of Power India, firm in the HBR case study Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) 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 Power India 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Power India 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.
High cash cycle compare to competitors
Power India 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Power India 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.
Slow decision making process
– As mentioned earlier in the report, Power India 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. Power India 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.
Lack of clear differentiation of Power India products
– To increase the profitability and margins on the products, Power India needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Power India is dominated by functional specialists. It is not different from other players in the Global Business segment. Power India needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Power India to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A), in the dynamic environment Power India has struggled to respond to the nimble upstart competition. Power India has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) | 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 Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Power India in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Better consumer reach
– The expansion of the 5G network will help Power India to increase its market reach. Power India 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.
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 Power India in the consumer business. Now Power India can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Power India 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.
Developing new processes and practices
– Power India can develop new processes and procedures in Global Business 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.
Learning at scale
– Online learning technologies has now opened space for Power India 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.
Building a culture of innovation
– managers at Power India 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 Global Business segment.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Power India is facing challenges because of the dominance of functional experts in the organization. Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) 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.
Loyalty marketing
– Power India 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Power India can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Power India 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.
Buying journey improvements
– Power India can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Power India can use these opportunities to build new business models that can help the communities that Power India operates in. Secondly it can use opportunities from government spending in Global Business sector.
Threats Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) are -
Increasing wage structure of Power India
– 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 Power India.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Power India 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 Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) .
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.
Stagnating economy with rate increase
– Power India 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A), Power India may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
Environmental challenges
– Power India 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. Power India can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Shortening product life cycle
– it is one of the major threat that Power India is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Power India needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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 Power India.
Regulatory challenges
– Power India 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 Global Business industry regulations.
Technology acceleration in Forth Industrial Revolution
– Power India has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Power India needs to keep up with the evolution of technology in the Global Business 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.
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.
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. Power India 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 Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) 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 Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) 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 Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) 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 Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) 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 Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) 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 Power India needs to make to build a sustainable competitive advantage.
