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 - – increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies,
increasing commodity prices, there is backlash against globalization, 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 -
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.
Strong track record of project management
– Jvs Mncs is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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.
Sustainable margins compare to other players in Global Business industry
– Decline of Emerging Economy Joint Ventures: The Case of India firm has clearly differentiated products in the market place. This has enabled Jvs Mncs to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Jvs Mncs to invest into research and development (R&D) and innovation.
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.
Highly skilled collaborators
– Jvs Mncs 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 Decline of Emerging Economy Joint Ventures: The Case of India HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Jvs Mncs digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Jvs Mncs 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.
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.
Organizational Resilience of Jvs Mncs
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Jvs Mncs 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
– 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.
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 -
Products dominated business model
– Even though Jvs Mncs 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 - Decline of Emerging Economy Joint Ventures: The Case of India should strive to include more intangible value offerings along with its core products and services.
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.
No frontier risks strategy
– After analyzing the HBR case study Decline of Emerging Economy Joint Ventures: The Case of India, 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.
Lack of clear differentiation of Jvs Mncs products
– To increase the profitability and margins on the products, Jvs Mncs needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Decline of Emerging Economy Joint Ventures: The Case of India, it seems that the employees of Jvs Mncs 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 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.
Capital Spending Reduction
– Even during the low interest decade, Jvs Mncs 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Jvs Mncs is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Decline of Emerging Economy Joint Ventures: The Case of India can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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.
Low market penetration in new markets
– Outside its home market of Jvs Mncs, firm in the HBR case study Decline of Emerging Economy Joint Ventures: The Case of India needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Jvs Mncs is facing challenges because of the dominance of functional experts in the organization. Decline of Emerging Economy Joint Ventures: The Case of India 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.
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.
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.
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.
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.
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.
Loyalty marketing
– Jvs Mncs 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.
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.
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 Jvs Mncs in the consumer business. Now Jvs Mncs 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. Jvs Mncs 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. Jvs Mncs 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.
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 -
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.
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 .
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.
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 .
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.
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.
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.
Increasing wage structure of Jvs Mncs
– 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 Jvs Mncs.
Technology acceleration in Forth Industrial Revolution
– Jvs Mncs has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Jvs Mncs needs to keep up with the evolution of technology in the Global Business sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
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.
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. Jvs Mncs 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.
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.
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.