Can Mexico Make Democracy Work? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Can Mexico Make Democracy Work?
Enrique PeA±a Nieto, the presidential candidate of the old Mexican ruling party elected in 2012, passed the most fundamental reforms in at least two decades. They included allowing private competition in the energy sector, including with the state-owned oil company, Pemex; strengthening competition in the telecoms industry; promoting private-bank and public development-bank lending. Also, political reforms allowed re-election (formerly prohibited) to all legislative posts, and gave key regulatory agencies independence from the executive. Would these reforms actually be implemented on the ground? Would they achieve good growth for more jobs and better income distribution? Would they finally make Mexican democracy work, or partly restore the hegemony of the old ruling party?
Swot Analysis of "Can Mexico Make Democracy Work?" written by Gunnar Trumbull, Jonathan Schlefer includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Reforms Democracy facing as an external strategic factors. Some of the topics covered in Can Mexico Make Democracy Work? case study are - Strategic Management Strategies, Competition, Currency, Economic development, Economics, Policy, Regulation and Global Business.
Some of the macro environment factors that can be used to understand the Can Mexico Make Democracy Work? casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google, there is increasing trade war between United States & China, supply chains are disrupted by pandemic , geopolitical disruptions, there is backlash against globalization,
increasing commodity prices, wage bills are increasing, etc
Introduction to SWOT Analysis of Can Mexico Make Democracy Work?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Can Mexico Make Democracy Work? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Reforms Democracy, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Reforms Democracy 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 Can Mexico Make Democracy Work? can be done for the following purposes –
1. Strategic planning using facts provided in Can Mexico Make Democracy Work? case study
2. Improving business portfolio management of Reforms Democracy
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 Reforms Democracy
Strengths Can Mexico Make Democracy Work? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Reforms Democracy in Can Mexico Make Democracy Work? Harvard Business Review case study are -
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Reforms Democracy digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Reforms Democracy 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.
Diverse revenue streams
– Reforms Democracy is present in almost all the verticals within the industry. This has provided firm in Can Mexico Make Democracy Work? 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.
Sustainable margins compare to other players in Global Business industry
– Can Mexico Make Democracy Work? firm has clearly differentiated products in the market place. This has enabled Reforms Democracy to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Reforms Democracy to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Can Mexico Make Democracy Work? 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.
High switching costs
– The high switching costs that Reforms Democracy 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.
Ability to recruit top talent
– Reforms Democracy is one of the leading recruiters in the industry. Managers in the Can Mexico Make Democracy Work? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Reforms Democracy has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Reforms Democracy 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.
Low bargaining power of suppliers
– Suppliers of Reforms Democracy in the sector have low bargaining power. Can Mexico Make Democracy Work? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Reforms Democracy to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Reforms Democracy 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.
Analytics focus
– Reforms Democracy 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 Gunnar Trumbull, Jonathan Schlefer 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.
High brand equity
– Reforms Democracy has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Reforms Democracy to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Global Business field
– Reforms Democracy 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 Reforms Democracy in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Can Mexico Make Democracy Work? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Can Mexico Make Democracy Work? are -
Aligning sales with marketing
– It come across in the case study Can Mexico Make Democracy Work? 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 Can Mexico Make Democracy Work? can leverage the sales team experience to cultivate customer relationships as Reforms Democracy is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Reforms Democracy 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.
Increasing silos among functional specialists
– The organizational structure of Reforms Democracy is dominated by functional specialists. It is not different from other players in the Global Business segment. Reforms Democracy needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Reforms Democracy to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Reforms Democracy is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Can Mexico Make Democracy Work? 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 Can Mexico Make Democracy Work?, is just above the industry average. Reforms Democracy needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Reforms Democracy supply chain. Even after few cautionary changes mentioned in the HBR case study - Can Mexico Make Democracy Work?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Reforms Democracy vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Can Mexico Make Democracy Work?, it seems that the employees of Reforms Democracy 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.
Interest costs
– Compare to the competition, Reforms Democracy 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.
Need for greater diversity
– Reforms Democracy 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.
Products dominated business model
– Even though Reforms Democracy 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 - Can Mexico Make Democracy Work? should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Can Mexico Make Democracy Work?, in the dynamic environment Reforms Democracy has struggled to respond to the nimble upstart competition. Reforms Democracy has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Can Mexico Make Democracy Work? | 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 Can Mexico Make Democracy Work? are -
Developing new processes and practices
– Reforms Democracy 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.
Leveraging digital technologies
– Reforms Democracy 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Reforms Democracy 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 Reforms Democracy to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Reforms Democracy 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 Reforms Democracy 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.
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. Reforms Democracy can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Reforms Democracy 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, Can Mexico Make Democracy Work?, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, Reforms Democracy 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.
Learning at scale
– Online learning technologies has now opened space for Reforms Democracy 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Reforms Democracy can use these opportunities to build new business models that can help the communities that Reforms Democracy operates in. Secondly it can use opportunities from government spending in Global Business sector.
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 Reforms Democracy in the consumer business. Now Reforms Democracy can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Reforms Democracy can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Can Mexico Make Democracy Work? 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.
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 Reforms Democracy 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.
Threats Can Mexico Make Democracy Work? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Can Mexico Make Democracy Work? are -
Increasing wage structure of Reforms Democracy
– 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 Reforms Democracy.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Reforms Democracy with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Reforms Democracy.
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 Reforms Democracy in the Global Business sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Can Mexico Make Democracy Work?, Reforms Democracy 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 .
Consumer confidence and its impact on Reforms Democracy 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
– Reforms Democracy 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. Reforms Democracy can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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. Reforms Democracy needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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. Reforms Democracy 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.
Shortening product life cycle
– it is one of the major threat that Reforms Democracy 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
– Reforms Democracy has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Reforms Democracy 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.
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 Reforms Democracy business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Reforms Democracy 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 Can Mexico Make Democracy Work? 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 Can Mexico Make Democracy Work? 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 Can Mexico Make Democracy Work? 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 Can Mexico Make Democracy Work? 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 Can Mexico Make Democracy Work? 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 Reforms Democracy needs to make to build a sustainable competitive advantage.
