Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (C) 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 (C)
Discusses the resolution of the canceled power project in Maharashtra. The contract between the American gas giant and Indian state government is renegotiated.
Authors :: Krishna G. Palepu, V. Kasturi Rangan, Sarayu Srinivasan
Swot Analysis of "Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (C)" written by Krishna G. Palepu, V. Kasturi Rangan, Sarayu Srinivasan includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Maharashtra Renegotiated facing as an external strategic factors. Some of the topics covered in Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (C) 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 (C) casestudy better are - – challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs, increasing commodity prices, technology disruption, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google,
geopolitical disruptions, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (C)
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 (C) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Maharashtra Renegotiated, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Maharashtra Renegotiated 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 (C) can be done for the following purposes –
1. Strategic planning using facts provided in Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (C) case study
2. Improving business portfolio management of Maharashtra Renegotiated
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 Maharashtra Renegotiated
Strengths Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (C) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Maharashtra Renegotiated in Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (C) Harvard Business Review case study are -
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Maharashtra Renegotiated digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Maharashtra Renegotiated 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.
Superior customer experience
– The customer experience strategy of Maharashtra Renegotiated in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Maharashtra Renegotiated 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 Krishna G. Palepu, V. Kasturi Rangan, Sarayu Srinivasan 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.
Successful track record of launching new products
– Maharashtra Renegotiated has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Maharashtra Renegotiated 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.
Innovation driven organization
– Maharashtra Renegotiated is one of the most innovative firm in sector. Manager in Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (C) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Maharashtra Renegotiated 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 Maharashtra Renegotiated 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 (C) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Global Business industry
– Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (C) firm has clearly differentiated products in the market place. This has enabled Maharashtra Renegotiated to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Maharashtra Renegotiated to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (C) 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 brand equity
– Maharashtra Renegotiated has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Maharashtra Renegotiated to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Maharashtra Renegotiated has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (C) 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.
Effective Research and Development (R&D)
– Maharashtra Renegotiated 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 (C) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High switching costs
– The high switching costs that Maharashtra Renegotiated 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.
Weaknesses Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (C) | 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 (C) are -
Lack of clear differentiation of Maharashtra Renegotiated products
– To increase the profitability and margins on the products, Maharashtra Renegotiated needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (C), in the dynamic environment Maharashtra Renegotiated has struggled to respond to the nimble upstart competition. Maharashtra Renegotiated has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (C), 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 operating costs
– Compare to the competitors, firm in the HBR case study Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (C) has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Maharashtra Renegotiated 's lucrative customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (C), it seems that the employees of Maharashtra Renegotiated 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, Maharashtra Renegotiated 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.
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 Maharashtra Renegotiated supply chain. Even after few cautionary changes mentioned in the HBR case study - Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (C), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Maharashtra Renegotiated vulnerable to further global disruptions in South East Asia.
Slow decision making process
– As mentioned earlier in the report, Maharashtra Renegotiated 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. Maharashtra Renegotiated 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.
Products dominated business model
– Even though Maharashtra Renegotiated 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 (C) should strive to include more intangible value offerings along with its core products and services.
Aligning sales with marketing
– It come across in the case study Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (C) 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 Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (C) can leverage the sales team experience to cultivate customer relationships as Maharashtra Renegotiated is planning to shift buying processes online.
Slow to strategic competitive environment developments
– As Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (C) HBR case study mentions - Maharashtra Renegotiated 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.
Opportunities Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (C) | 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 (C) are -
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. Maharashtra Renegotiated 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 Maharashtra Renegotiated can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Maharashtra Renegotiated 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.
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 Maharashtra Renegotiated in the consumer business. Now Maharashtra Renegotiated can target international markets with far fewer capital restrictions requirements than the existing system.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Maharashtra Renegotiated can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Maharashtra Renegotiated can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Creating value in data economy
– The success of analytics program of Maharashtra Renegotiated has opened avenues for new revenue streams for the organization in the industry. This can help Maharashtra Renegotiated to build a more holistic ecosystem as suggested in the Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (C) case study. Maharashtra Renegotiated can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Maharashtra Renegotiated 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.
Building a culture of innovation
– managers at Maharashtra Renegotiated 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.
Developing new processes and practices
– Maharashtra Renegotiated 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Maharashtra Renegotiated can use these opportunities to build new business models that can help the communities that Maharashtra Renegotiated operates in. Secondly it can use opportunities from government spending in Global Business sector.
Using analytics as competitive advantage
– Maharashtra Renegotiated 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 (C) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Maharashtra Renegotiated to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Maharashtra Renegotiated to increase its market reach. Maharashtra Renegotiated will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Low interest rates
– Even though inflation is raising its head in most developed economies, Maharashtra Renegotiated 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.
Threats Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (C) 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 (C) are -
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.
High dependence on third party suppliers
– Maharashtra Renegotiated 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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Stagnating economy with rate increase
– Maharashtra Renegotiated 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Maharashtra Renegotiated 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. Maharashtra Renegotiated can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 (C), Maharashtra Renegotiated 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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Maharashtra Renegotiated with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Maharashtra Renegotiated 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. Maharashtra Renegotiated can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Consumer confidence and its impact on Maharashtra Renegotiated 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.
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 Maharashtra Renegotiated in the Global Business sector and impact the bottomline of the organization.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Maharashtra Renegotiated 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Maharashtra Renegotiated can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (C) .
Weighted SWOT Analysis of Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (C) 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 (C) 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 (C) 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 (C) 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 (C) 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 Maharashtra Renegotiated needs to make to build a sustainable competitive advantage.
