Swot Analysis of "Ethyl Corp. of Virginia: The MMT Battle in Canada (B)" written by Tony S. Frost includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mmt Ethyl facing as an external strategic factors. Some of the topics covered in Ethyl Corp. of Virginia: The MMT Battle in Canada (B) case study are - Strategic Management Strategies, Health, Regulation, Sustainability and Global Business.
Some of the macro environment factors that can be used to understand the Ethyl Corp. of Virginia: The MMT Battle in Canada (B) casestudy better are - – geopolitical disruptions, supply chains are disrupted by pandemic , increasing household debt because of falling income levels, increasing energy prices, wage bills are increasing, talent flight as more people leaving formal jobs, increasing commodity prices,
increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, etc
Introduction to SWOT Analysis of Ethyl Corp. of Virginia: The MMT Battle in Canada (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Ethyl Corp. of Virginia: The MMT Battle in Canada (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mmt Ethyl, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mmt Ethyl 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 Ethyl Corp. of Virginia: The MMT Battle in Canada (B) can be done for the following purposes –
1. Strategic planning using facts provided in Ethyl Corp. of Virginia: The MMT Battle in Canada (B) case study
2. Improving business portfolio management of Mmt Ethyl
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 Mmt Ethyl
Strengths Ethyl Corp. of Virginia: The MMT Battle in Canada (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mmt Ethyl in Ethyl Corp. of Virginia: The MMT Battle in Canada (B) Harvard Business Review case study are -
Highly skilled collaborators
– Mmt Ethyl 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 Ethyl Corp. of Virginia: The MMT Battle in Canada (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that Mmt Ethyl 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.
Training and development
– Mmt Ethyl has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Ethyl Corp. of Virginia: The MMT Battle in Canada (B) 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.
High brand equity
– Mmt Ethyl has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mmt Ethyl to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Mmt Ethyl has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mmt Ethyl 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.
Ability to recruit top talent
– Mmt Ethyl is one of the leading recruiters in the industry. Managers in the Ethyl Corp. of Virginia: The MMT Battle in Canada (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Mmt Ethyl
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mmt Ethyl does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Mmt Ethyl digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mmt Ethyl 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 Mmt Ethyl in the sector have low bargaining power. Ethyl Corp. of Virginia: The MMT Battle in Canada (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mmt Ethyl to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Mmt Ethyl 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 Ethyl Corp. of Virginia: The MMT Battle in Canada (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Ethyl Corp. of Virginia: The MMT Battle in Canada (B) 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.
Sustainable margins compare to other players in Global Business industry
– Ethyl Corp. of Virginia: The MMT Battle in Canada (B) firm has clearly differentiated products in the market place. This has enabled Mmt Ethyl to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Mmt Ethyl to invest into research and development (R&D) and innovation.
Weaknesses Ethyl Corp. of Virginia: The MMT Battle in Canada (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Ethyl Corp. of Virginia: The MMT Battle in Canada (B) are -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Ethyl Corp. of Virginia: The MMT Battle in Canada (B), is just above the industry average. Mmt Ethyl 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.
Aligning sales with marketing
– It come across in the case study Ethyl Corp. of Virginia: The MMT Battle in Canada (B) 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 Ethyl Corp. of Virginia: The MMT Battle in Canada (B) can leverage the sales team experience to cultivate customer relationships as Mmt Ethyl is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Ethyl Corp. of Virginia: The MMT Battle in Canada (B), in the dynamic environment Mmt Ethyl has struggled to respond to the nimble upstart competition. Mmt Ethyl has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Ethyl Corp. of Virginia: The MMT Battle in Canada (B) HBR case study mentions - Mmt Ethyl 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.
Interest costs
– Compare to the competition, Mmt Ethyl 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.
Lack of clear differentiation of Mmt Ethyl products
– To increase the profitability and margins on the products, Mmt Ethyl needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Mmt Ethyl 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, Mmt Ethyl is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Ethyl Corp. of Virginia: The MMT Battle in Canada (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
No frontier risks strategy
– After analyzing the HBR case study Ethyl Corp. of Virginia: The MMT Battle in Canada (B), 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.
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 Mmt Ethyl supply chain. Even after few cautionary changes mentioned in the HBR case study - Ethyl Corp. of Virginia: The MMT Battle in Canada (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mmt Ethyl vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Mmt Ethyl 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.
Opportunities Ethyl Corp. of Virginia: The MMT Battle in Canada (B) | 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 Ethyl Corp. of Virginia: The MMT Battle in Canada (B) are -
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 Mmt Ethyl 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Mmt Ethyl can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Mmt Ethyl 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.
Manufacturing automation
– Mmt Ethyl 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Mmt Ethyl 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.
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 Mmt Ethyl in the consumer business. Now Mmt Ethyl 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 Mmt Ethyl can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Mmt Ethyl 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 Mmt Ethyl 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, Mmt Ethyl is facing challenges because of the dominance of functional experts in the organization. Ethyl Corp. of Virginia: The MMT Battle in Canada (B) 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.
Leveraging digital technologies
– Mmt Ethyl 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Mmt Ethyl 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, Ethyl Corp. of Virginia: The MMT Battle in Canada (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Mmt Ethyl can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Ethyl Corp. of Virginia: The MMT Battle in Canada (B) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Threats Ethyl Corp. of Virginia: The MMT Battle in Canada (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Ethyl Corp. of Virginia: The MMT Battle in Canada (B) are -
Environmental challenges
– Mmt Ethyl 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. Mmt Ethyl can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Ethyl Corp. of Virginia: The MMT Battle in Canada (B), Mmt Ethyl 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 .
Stagnating economy with rate increase
– Mmt Ethyl 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mmt Ethyl with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Mmt Ethyl needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Increasing wage structure of Mmt Ethyl
– 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 Mmt Ethyl.
Regulatory challenges
– Mmt Ethyl 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.
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. Mmt Ethyl 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.
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 Mmt Ethyl.
Shortening product life cycle
– it is one of the major threat that Mmt Ethyl is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Mmt Ethyl 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.
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. Mmt Ethyl can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Ethyl Corp. of Virginia: The MMT Battle in Canada (B) 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 Ethyl Corp. of Virginia: The MMT Battle in Canada (B) 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 Ethyl Corp. of Virginia: The MMT Battle in Canada (B) 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 Ethyl Corp. of Virginia: The MMT Battle in Canada (B) 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 Ethyl Corp. of Virginia: The MMT Battle in Canada (B) 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 Mmt Ethyl needs to make to build a sustainable competitive advantage.