Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market
Brazil has the largest fresh water resources in the world, but the municipal water market faces customers, both corporations and individuals, who do not trust the quality of the water. Without a way of evaluating the quality of the water, consumer consumption remains suboptimal. A multinational involved in quality control and certification, Underwriters Laboratories (UL) could act as a trusted third party and introduce confidence in the market. How should it approach this potentially huge but very uncertain market in this major developing economy?
Swot Analysis of "Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market" written by John McMillan, Jean-Bernard Rolland includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Water Underwriters facing as an external strategic factors. Some of the topics covered in Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market case study are - Strategic Management Strategies, Emerging markets, Leadership, Product development and Global Business.
Some of the macro environment factors that can be used to understand the Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market casestudy better are - – there is increasing trade war between United States & China, geopolitical disruptions, increasing household debt because of falling income levels, central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, talent flight as more people leaving formal jobs, increasing inequality as vast percentage of new income is going to the top 1%,
increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Water Underwriters, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Water Underwriters 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 Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market can be done for the following purposes –
1. Strategic planning using facts provided in Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market case study
2. Improving business portfolio management of Water Underwriters
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 Underwriters
Strengths Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Water Underwriters in Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market Harvard Business Review case study are -
Successful track record of launching new products
– Water Underwriters has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Water Underwriters 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 lead change in Global Business field
– Water Underwriters 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 Underwriters in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Water Underwriters 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 Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Water Underwriters 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 Underwriters is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Sustainable margins compare to other players in Global Business industry
– Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market firm has clearly differentiated products in the market place. This has enabled Water Underwriters to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Water Underwriters to invest into research and development (R&D) and innovation.
Organizational Resilience of Water Underwriters
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Water Underwriters does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Water Underwriters in the sector have low bargaining power. Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Water Underwriters to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Water Underwriters is one of the most innovative firm in sector. Manager in Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Water Underwriters 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.
Superior customer experience
– The customer experience strategy of Water Underwriters in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Operational resilience
– The operational resilience strategy in the Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market 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.
Effective Research and Development (R&D)
– Water Underwriters 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 Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Weaknesses Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market are -
Low market penetration in new markets
– Outside its home market of Water Underwriters, firm in the HBR case study Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Water Underwriters 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 - Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Water Underwriters is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Capital Spending Reduction
– Even during the low interest decade, Water Underwriters 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Water Underwriters 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.
High bargaining power of channel partners
– Because of the regulatory requirements, John McMillan, Jean-Bernard Rolland suggests that, Water Underwriters 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.
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 Water Underwriters supply chain. Even after few cautionary changes mentioned in the HBR case study - Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Water Underwriters vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Water Underwriters 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market, it seems that the employees of Water Underwriters 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market 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 Water Underwriters 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Water Underwriters has relatively successful track record of launching new products.
Opportunities Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market | 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 Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market are -
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Water Underwriters can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Building a culture of innovation
– managers at Water Underwriters 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.
Manufacturing automation
– Water Underwriters 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.
Better consumer reach
– The expansion of the 5G network will help Water Underwriters to increase its market reach. Water Underwriters 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.
Developing new processes and practices
– Water Underwriters 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.
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 Underwriters can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Water Underwriters 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 Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Water Underwriters to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Water Underwriters 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, Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market, 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 Underwriters in the consumer business. Now Water Underwriters can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Water Underwriters 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 Water Underwriters 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Water Underwriters is facing challenges because of the dominance of functional experts in the organization. Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market 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.
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 Underwriters can use these opportunities to build new business models that can help the communities that Water Underwriters operates in. Secondly it can use opportunities from government spending in Global Business sector.
Threats Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market, Water Underwriters 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 .
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 Water Underwriters business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Water Underwriters 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. Water Underwriters can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Increasing wage structure of Water Underwriters
– 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 Underwriters.
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 Underwriters 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.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Water Underwriters with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Water Underwriters in the Global Business industry. The Global Business industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Regulatory challenges
– Water Underwriters 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.
High dependence on third party suppliers
– Water Underwriters 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.
Consumer confidence and its impact on Water Underwriters 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.
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 Underwriters can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Water Underwriters is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market 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 Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market 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 Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market 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 Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market 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 Underwriters Laboratories: Bringing Confidence to the Brazilian Water Market 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 Underwriters needs to make to build a sustainable competitive advantage.
