Decline of Emerging Economy Joint Ventures: The Case of India SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Decline of Emerging Economy Joint Ventures: The Case of India
Emerging economies such as India have become an increasingly important part of the global business landscape. Until recently, multinational corporations (MNCs) relied on joint ventures (JVs) with local companies to exploit these business opportunities. Lately, however, there has been a marked reduction in the formation of new JVs between MNCs and local companies. Moreover, many earlier JVs also are increasingly being terminated, often with great acrimony. Highlights how "regulatory liberalization" of the business environment in India has played a big role, directly and indirectly, in driving this change. Also demonstrates how three other factors--"resource complementarity (or lack thereof) between partners," the "race to learn" between partners, and "returns to globalization to MNC partners"--are affecting the formation of JVs in an increasingly liberalized environment.
Swot Analysis of "Decline of Emerging Economy Joint Ventures: The Case of India" written by Prashant Kale, Jaideep Anand includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Jvs Mncs facing as an external strategic factors. Some of the topics covered in Decline of Emerging Economy Joint Ventures: The Case of India case study are - Strategic Management Strategies, Emerging markets, Globalization, Joint ventures and Global Business.
Some of the macro environment factors that can be used to understand the Decline of Emerging Economy Joint Ventures: The Case of India casestudy better are - – technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, wage bills are increasing, cloud computing is disrupting traditional business models, supply chains are disrupted by pandemic , customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China,
there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Decline of Emerging Economy Joint Ventures: The Case of India
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Decline of Emerging Economy Joint Ventures: The Case of India case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jvs Mncs, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jvs Mncs 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 Decline of Emerging Economy Joint Ventures: The Case of India can be done for the following purposes –
1. Strategic planning using facts provided in Decline of Emerging Economy Joint Ventures: The Case of India case study
2. Improving business portfolio management of Jvs Mncs
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 Jvs Mncs
Strengths Decline of Emerging Economy Joint Ventures: The Case of India | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Jvs Mncs in Decline of Emerging Economy Joint Ventures: The Case of India Harvard Business Review case study are -
Analytics focus
– Jvs Mncs 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 Prashant Kale, Jaideep Anand 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.
Operational resilience
– The operational resilience strategy in the Decline of Emerging Economy Joint Ventures: The Case of India 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.
Innovation driven organization
– Jvs Mncs is one of the most innovative firm in sector. Manager in Decline of Emerging Economy Joint Ventures: The Case of India Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Jvs Mncs in the sector have low bargaining power. Decline of Emerging Economy Joint Ventures: The Case of India has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Jvs Mncs to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Jvs Mncs is one of the leading recruiters in the industry. Managers in the Decline of Emerging Economy Joint Ventures: The Case of India are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Jvs Mncs 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.
Diverse revenue streams
– Jvs Mncs is present in almost all the verticals within the industry. This has provided firm in Decline of Emerging Economy Joint Ventures: The Case of India 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 lead change in Global Business field
– Jvs Mncs 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 Jvs Mncs in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Jvs Mncs has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Jvs Mncs to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Jvs Mncs has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Jvs Mncs 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.
Cross disciplinary teams
– Horizontal connected teams at the Jvs Mncs 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.
Training and development
– Jvs Mncs has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Decline of Emerging Economy Joint Ventures: The Case of India 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.
Weaknesses Decline of Emerging Economy Joint Ventures: The Case of India | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Decline of Emerging Economy Joint Ventures: The Case of India are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Decline of Emerging Economy Joint Ventures: The Case of India 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 Jvs Mncs has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study Decline of Emerging Economy Joint Ventures: The Case of India 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 Decline of Emerging Economy Joint Ventures: The Case of India can leverage the sales team experience to cultivate customer relationships as Jvs Mncs is planning to shift buying processes online.
Skills based hiring
– The stress on hiring functional specialists at Jvs Mncs 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.
Interest costs
– Compare to the competition, Jvs Mncs 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Jvs Mncs 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Decline of Emerging Economy Joint Ventures: The Case of India, is just above the industry average. Jvs Mncs 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.
Slow to strategic competitive environment developments
– As Decline of Emerging Economy Joint Ventures: The Case of India HBR case study mentions - Jvs Mncs 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Prashant Kale, Jaideep Anand suggests that, Jvs Mncs 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 operating costs
– Compare to the competitors, firm in the HBR case study Decline of Emerging Economy Joint Ventures: The Case of India 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 Jvs Mncs 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Jvs Mncs 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. Jvs Mncs 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Decline of Emerging Economy Joint Ventures: The Case of India, in the dynamic environment Jvs Mncs has struggled to respond to the nimble upstart competition. Jvs Mncs has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Decline of Emerging Economy Joint Ventures: The Case of India | 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 Decline of Emerging Economy Joint Ventures: The Case of India 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 Jvs Mncs 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, Jvs Mncs can use these opportunities to build new business models that can help the communities that Jvs Mncs operates in. Secondly it can use opportunities from government spending in Global Business sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Jvs Mncs to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Jvs Mncs to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Jvs Mncs 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.
Building a culture of innovation
– managers at Jvs Mncs 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.
Buying journey improvements
– Jvs Mncs can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Decline of Emerging Economy Joint Ventures: The Case of India 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.
Creating value in data economy
– The success of analytics program of Jvs Mncs has opened avenues for new revenue streams for the organization in the industry. This can help Jvs Mncs to build a more holistic ecosystem as suggested in the Decline of Emerging Economy Joint Ventures: The Case of India case study. Jvs Mncs can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Jvs Mncs can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Jvs Mncs 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, Decline of Emerging Economy Joint Ventures: The Case of India, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Jvs Mncs can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Low interest rates
– Even though inflation is raising its head in most developed economies, Jvs Mncs 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.
Better consumer reach
– The expansion of the 5G network will help Jvs Mncs to increase its market reach. Jvs Mncs 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.
Using analytics as competitive advantage
– Jvs Mncs 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 Decline of Emerging Economy Joint Ventures: The Case of India - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Jvs Mncs to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Decline of Emerging Economy Joint Ventures: The Case of India External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Decline of Emerging Economy Joint Ventures: The Case of India 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.
Regulatory challenges
– Jvs Mncs 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.
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 Jvs Mncs in the Global Business sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Jvs Mncs 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 Decline of Emerging Economy Joint Ventures: The Case of India .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Jvs Mncs 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.
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 Jvs Mncs business can come under increasing regulations regarding data privacy, data security, etc.
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. Jvs Mncs 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
– Jvs Mncs 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.
Environmental challenges
– Jvs Mncs 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. Jvs Mncs can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Jvs Mncs with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Jvs Mncs 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Decline of Emerging Economy Joint Ventures: The Case of India, Jvs Mncs 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 .
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 Jvs Mncs.
Weighted SWOT Analysis of Decline of Emerging Economy Joint Ventures: The Case of India 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 Decline of Emerging Economy Joint Ventures: The Case of India 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 Decline of Emerging Economy Joint Ventures: The Case of India 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 Decline of Emerging Economy Joint Ventures: The Case of India 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 Decline of Emerging Economy Joint Ventures: The Case of India 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 Jvs Mncs needs to make to build a sustainable competitive advantage.
