Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia
The case is about a city's water security and draws on the intense debate about the construction of a reservoir in a college town in Virginia in the wake of a record drought. The case highlights the role of public utilities in water provision, illustrates the different positions of various stakeholders, and raises the question of what the appropriate price for water is. It provides stylized facts of water use across sectors and rests on a basic analysis of present and future water demand as well as on an assessment of future water supply. This case is used in Darden's elective, "The Global Economics of Water." It would also work well in courses dealing with the environmental impacts of urban planning."
Swot Analysis of "Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia" written by Peter Debaere, Brian Ritcher includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Water Reservoir facing as an external strategic factors. Some of the topics covered in Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia case study are - Strategic Management Strategies, and Global Business.
Some of the macro environment factors that can be used to understand the Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, geopolitical disruptions, central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google,
technology disruption, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Water Reservoir, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Water Reservoir 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 Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia can be done for the following purposes –
1. Strategic planning using facts provided in Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia case study
2. Improving business portfolio management of Water Reservoir
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 Water Reservoir
Strengths Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Water Reservoir in Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia Harvard Business Review case study are -
Diverse revenue streams
– Water Reservoir is present in almost all the verticals within the industry. This has provided firm in Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia 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
– Water Reservoir is one of the leading recruiters in the industry. Managers in the Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Water Reservoir 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.
Organizational Resilience of Water Reservoir
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Water Reservoir does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Global Business field
– Water Reservoir 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 Water Reservoir in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Water Reservoir is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Superior customer experience
– The customer experience strategy of Water Reservoir in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High switching costs
– The high switching costs that Water Reservoir 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.
Sustainable margins compare to other players in Global Business industry
– Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia firm has clearly differentiated products in the market place. This has enabled Water Reservoir to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Water Reservoir to invest into research and development (R&D) and innovation.
Successful track record of launching new products
– Water Reservoir has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Water Reservoir 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
– Water Reservoir has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia 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.
Learning organization
- Water Reservoir 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 Water Reservoir is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia are -
Capital Spending Reduction
– Even during the low interest decade, Water Reservoir 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia, in the dynamic environment Water Reservoir has struggled to respond to the nimble upstart competition. Water Reservoir 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 Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia HBR case study mentions - Water Reservoir 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.
Skills based hiring
– The stress on hiring functional specialists at Water Reservoir has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Products dominated business model
– Even though Water Reservoir 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 - Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Water Reservoir 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Water Reservoir is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High cash cycle compare to competitors
Water Reservoir 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, Peter Debaere, Brian Ritcher suggests that, Water Reservoir 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.
Lack of clear differentiation of Water Reservoir products
– To increase the profitability and margins on the products, Water Reservoir needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow decision making process
– As mentioned earlier in the report, Water Reservoir 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. Water Reservoir 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.
Opportunities Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia | 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 Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia are -
Creating value in data economy
– The success of analytics program of Water Reservoir has opened avenues for new revenue streams for the organization in the industry. This can help Water Reservoir to build a more holistic ecosystem as suggested in the Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia case study. Water Reservoir can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Water Reservoir 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Water Reservoir 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, Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia, 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 Water Reservoir in the consumer business. Now Water Reservoir can target international markets with far fewer capital restrictions requirements than the existing system.
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. Water Reservoir can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Water Reservoir 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.
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. Water Reservoir can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Water Reservoir can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Water Reservoir 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Water Reservoir can use these opportunities to build new business models that can help the communities that Water Reservoir operates in. Secondly it can use opportunities from government spending in Global Business sector.
Learning at scale
– Online learning technologies has now opened space for Water Reservoir 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.
Leveraging digital technologies
– Water Reservoir 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.
Manufacturing automation
– Water Reservoir 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.
Threats Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia are -
Shortening product life cycle
– it is one of the major threat that Water Reservoir is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Water Reservoir.
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.
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. Water Reservoir can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Increasing wage structure of Water Reservoir
– 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 Water Reservoir.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Water Reservoir 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. Water Reservoir needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Water Reservoir 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.
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. Water Reservoir 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.
Consumer confidence and its impact on Water Reservoir 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Water Reservoir 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 Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Water Reservoir 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.
Weighted SWOT Analysis of Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia 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 Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia 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 Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia 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 Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia 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 Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia 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 Water Reservoir needs to make to build a sustainable competitive advantage.
Feel free to connect with us if you need business research.
You can download Excel Template of Case Study Solution & Analysis of Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia
