Tata Consultancy Services: High Technology in a Low-Income Country SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Tata Consultancy Services: High Technology in a Low-Income Country
Explores the development of the software services industry in India and the challenges facing the market leader as domestic competition intensifies and new countries attempt to replicate India's success.
Swot Analysis of "Tata Consultancy Services: High Technology in a Low-Income Country" written by Robert E. Kennedy includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Intensifies Consultancy facing as an external strategic factors. Some of the topics covered in Tata Consultancy Services: High Technology in a Low-Income Country case study are - Strategic Management Strategies, Emerging markets, IT and Global Business.
Some of the macro environment factors that can be used to understand the Tata Consultancy Services: High Technology in a Low-Income Country casestudy better are - – increasing government debt because of Covid-19 spendings, geopolitical disruptions, increasing transportation and logistics costs, competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation,
there is backlash against globalization, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of Tata Consultancy Services: High Technology in a Low-Income Country
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Tata Consultancy Services: High Technology in a Low-Income Country case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Intensifies Consultancy, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Intensifies Consultancy 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 Tata Consultancy Services: High Technology in a Low-Income Country can be done for the following purposes –
1. Strategic planning using facts provided in Tata Consultancy Services: High Technology in a Low-Income Country case study
2. Improving business portfolio management of Intensifies Consultancy
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 Intensifies Consultancy
Strengths Tata Consultancy Services: High Technology in a Low-Income Country | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Intensifies Consultancy in Tata Consultancy Services: High Technology in a Low-Income Country Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Intensifies Consultancy in the sector have low bargaining power. Tata Consultancy Services: High Technology in a Low-Income Country has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Intensifies Consultancy to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Intensifies Consultancy has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Intensifies Consultancy to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Intensifies Consultancy 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 Intensifies Consultancy is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Tata Consultancy Services: High Technology in a Low-Income Country Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Intensifies Consultancy is one of the leading recruiters in the industry. Managers in the Tata Consultancy Services: High Technology in a Low-Income Country are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the Tata Consultancy Services: High Technology in a Low-Income Country 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.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Intensifies Consultancy digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Intensifies Consultancy 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.
High switching costs
– The high switching costs that Intensifies Consultancy 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.
Successful track record of launching new products
– Intensifies Consultancy has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Intensifies Consultancy 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.
Strong track record of project management
– Intensifies Consultancy is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Intensifies Consultancy 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 Robert E. Kennedy 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.
Highly skilled collaborators
– Intensifies Consultancy 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 Tata Consultancy Services: High Technology in a Low-Income Country HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Intensifies Consultancy in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Tata Consultancy Services: High Technology in a Low-Income Country | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Tata Consultancy Services: High Technology in a Low-Income Country are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Tata Consultancy Services: High Technology in a Low-Income Country, in the dynamic environment Intensifies Consultancy has struggled to respond to the nimble upstart competition. Intensifies Consultancy has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Intensifies Consultancy 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.
Capital Spending Reduction
– Even during the low interest decade, Intensifies Consultancy 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, Intensifies Consultancy 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Intensifies Consultancy is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Tata Consultancy Services: High Technology in a Low-Income Country can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Intensifies Consultancy 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 - Tata Consultancy Services: High Technology in a Low-Income Country should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Intensifies Consultancy has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High cash cycle compare to competitors
Intensifies Consultancy 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.
Increasing silos among functional specialists
– The organizational structure of Intensifies Consultancy is dominated by functional specialists. It is not different from other players in the Global Business segment. Intensifies Consultancy needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Intensifies Consultancy to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Intensifies Consultancy 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.
Slow to strategic competitive environment developments
– As Tata Consultancy Services: High Technology in a Low-Income Country HBR case study mentions - Intensifies Consultancy 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 Tata Consultancy Services: High Technology in a Low-Income Country | 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 Tata Consultancy Services: High Technology in a Low-Income Country are -
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. Intensifies Consultancy 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. Intensifies Consultancy 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.
Buying journey improvements
– Intensifies Consultancy can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Tata Consultancy Services: High Technology in a Low-Income Country 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.
Learning at scale
– Online learning technologies has now opened space for Intensifies Consultancy 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.
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. Intensifies Consultancy can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Intensifies Consultancy can use these opportunities to build new business models that can help the communities that Intensifies Consultancy operates in. Secondly it can use opportunities from government spending in Global Business sector.
Using analytics as competitive advantage
– Intensifies Consultancy 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 Tata Consultancy Services: High Technology in a Low-Income Country - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Intensifies Consultancy to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Intensifies Consultancy is facing challenges because of the dominance of functional experts in the organization. Tata Consultancy Services: High Technology in a Low-Income Country 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.
Creating value in data economy
– The success of analytics program of Intensifies Consultancy has opened avenues for new revenue streams for the organization in the industry. This can help Intensifies Consultancy to build a more holistic ecosystem as suggested in the Tata Consultancy Services: High Technology in a Low-Income Country case study. Intensifies Consultancy can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Intensifies Consultancy can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Intensifies Consultancy can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Intensifies Consultancy 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.
Developing new processes and practices
– Intensifies Consultancy 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Intensifies Consultancy 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 Intensifies Consultancy to hire the very best people irrespective of their geographical location.
Threats Tata Consultancy Services: High Technology in a Low-Income Country External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Tata Consultancy Services: High Technology in a Low-Income Country are -
Regulatory challenges
– Intensifies Consultancy 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.
Stagnating economy with rate increase
– Intensifies Consultancy 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.
Technology acceleration in Forth Industrial Revolution
– Intensifies Consultancy has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Intensifies Consultancy 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.
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. Intensifies Consultancy 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 wage structure of Intensifies Consultancy
– 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 Intensifies Consultancy.
Shortening product life cycle
– it is one of the major threat that Intensifies Consultancy is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Intensifies Consultancy 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Intensifies Consultancy 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Tata Consultancy Services: High Technology in a Low-Income Country, Intensifies Consultancy 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 .
Consumer confidence and its impact on Intensifies Consultancy 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.
Environmental challenges
– Intensifies Consultancy 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. Intensifies Consultancy can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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. Intensifies Consultancy can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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 Intensifies Consultancy.
Weighted SWOT Analysis of Tata Consultancy Services: High Technology in a Low-Income Country 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 Tata Consultancy Services: High Technology in a Low-Income Country 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 Tata Consultancy Services: High Technology in a Low-Income Country 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 Tata Consultancy Services: High Technology in a Low-Income Country 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 Tata Consultancy Services: High Technology in a Low-Income Country 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 Intensifies Consultancy needs to make to build a sustainable competitive advantage.