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 - – geopolitical disruptions, increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies,
increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, 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 -
Highly skilled collaborators
– Power India 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 Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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.
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.
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.
Strong track record of project management
– Power India is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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.
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.
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.
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.
Effective Research and Development (R&D)
– Power India 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 Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Power India in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
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 -
Interest costs
– Compare to the competition, Power India 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, 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A), is just above the industry average. Power India 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.
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 to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Power India is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Power India 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 - Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) should strive to include more intangible value offerings along with its core products and services.
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.
No frontier risks strategy
– After analyzing the HBR case study Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A), it seems that company is thinking about the frontier risks that can impact Global Business 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.
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.
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.
High bargaining power of channel partners
– Because of the regulatory requirements, V. Kasturi Rangan, Krishna G. Palepu, Sarayu Srinivasan, Anu Bhasin suggests that, Power India 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.
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 -
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.
Manufacturing automation
– Power India can use the latest technology developments to improve its manufacturing and designing process in Global Business 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.
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.
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.
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. Power India can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Power India 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 Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Power India to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
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.
Creating value in data economy
– The success of analytics program of Power India has opened avenues for new revenue streams for the organization in the industry. This can help Power India to build a more holistic ecosystem as suggested in the Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A) case study. Power India can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Power India 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, Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
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.
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 -
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Power India can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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.
Consumer confidence and its impact on Power India 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.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Power India in the Global Business industry. The Global Business 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.
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.
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 .
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.
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.
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.
High dependence on third party suppliers
– Power India 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.
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 Power India business can come under increasing regulations regarding data privacy, data security, etc.
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.