Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A)
Features the challenges facing an entrant in the New Zealand telecommunications market during the period 1989-1994. Clear Communications Ltd. (CCL), a joint venture owned by Bell Canada, MCI, New Zealand Television Corp., and Todd Companies, begins offering long distance service in May 1991. The firm is dependent on access to the network of the incumbent, Telecom Corp. of New Zealand, to offer most of its services. This dependence proves to be a significant obstacle to CCL's expansion into the local business call market, particularly given New Zealand's unique "light-handed" regulatory system. Clear ultimately spends millions of dollars in a failed four-year lawsuit to obtain better terms of interconnection. In October 1994, CEO Andrew Makin must decide the future strategic direction of the firm.
Swot Analysis of "Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A)" written by Willis Emmons, Martin Calles includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Zealand Corp facing as an external strategic factors. Some of the topics covered in Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) case study are - Strategic Management Strategies, Economy, Regulation and Global Business.
Some of the macro environment factors that can be used to understand the Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) casestudy better are - – there is backlash against globalization, central banks are concerned over increasing inflation, technology disruption, increasing transportation and logistics costs, talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%,
digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Zealand Corp, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Zealand Corp 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 Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) can be done for the following purposes –
1. Strategic planning using facts provided in Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) case study
2. Improving business portfolio management of Zealand Corp
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 Zealand Corp
Strengths Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Zealand Corp in Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) Harvard Business Review case study are -
Training and development
– Zealand Corp has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Effective Research and Development (R&D)
– Zealand Corp 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 Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Zealand Corp 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 Zealand Corp is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Zealand Corp
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Zealand Corp does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) 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.
Diverse revenue streams
– Zealand Corp is present in almost all the verticals within the industry. This has provided firm in Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) 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
– Zealand Corp 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 Zealand Corp in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Zealand Corp is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Zealand Corp is one of the most innovative firm in sector. Manager in Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Zealand Corp has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Zealand Corp 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 recruit top talent
– Zealand Corp is one of the leading recruiters in the industry. Managers in the Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) 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 Zealand Corp has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Weaknesses Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) are -
Slow decision making process
– As mentioned earlier in the report, Zealand Corp 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. Zealand Corp 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Zealand Corp 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.
Low market penetration in new markets
– Outside its home market of Zealand Corp, firm in the HBR case study Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
No frontier risks strategy
– After analyzing the HBR case study Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A), 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.
Capital Spending Reduction
– Even during the low interest decade, Zealand Corp 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.
Lack of clear differentiation of Zealand Corp products
– To increase the profitability and margins on the products, Zealand Corp needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) 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 Zealand Corp 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) 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 Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) can leverage the sales team experience to cultivate customer relationships as Zealand Corp is planning to shift buying processes online.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) 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 Zealand Corp has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Zealand Corp is dominated by functional specialists. It is not different from other players in the Global Business segment. Zealand Corp needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Zealand Corp to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A), is just above the industry average. Zealand Corp 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.
Opportunities Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) | 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 Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Zealand Corp in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Zealand Corp 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, Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Zealand Corp can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Zealand Corp can use these opportunities to build new business models that can help the communities that Zealand Corp operates in. Secondly it can use opportunities from government spending in Global Business sector.
Loyalty marketing
– Zealand Corp 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.
Creating value in data economy
– The success of analytics program of Zealand Corp has opened avenues for new revenue streams for the organization in the industry. This can help Zealand Corp to build a more holistic ecosystem as suggested in the Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) case study. Zealand Corp can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Zealand Corp 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 Zealand Corp to hire the very best people irrespective of their geographical location.
Developing new processes and practices
– Zealand Corp 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.
Manufacturing automation
– Zealand Corp can use the latest technology developments to improve its manufacturing and designing process in Global Business segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Building a culture of innovation
– managers at Zealand Corp 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.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Zealand Corp can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. Zealand Corp can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Zealand Corp 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. Zealand Corp 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 Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) are -
Environmental challenges
– Zealand Corp 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. Zealand Corp can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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 Zealand Corp business can come under increasing regulations regarding data privacy, data security, etc.
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.
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 Zealand Corp.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Zealand Corp with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Zealand Corp 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, Zealand Corp 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 Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) .
Regulatory challenges
– Zealand Corp 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Zealand Corp 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.
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. Zealand Corp needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Increasing wage structure of Zealand Corp
– 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 Zealand Corp.
Stagnating economy with rate increase
– Zealand Corp 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.
Shortening product life cycle
– it is one of the major threat that Zealand Corp 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 Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) 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 Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) 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 Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) 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 Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) 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 Clear Communications Ltd. vs. Telecom Corp. of New Zealand Ltd. (A) 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 Zealand Corp needs to make to build a sustainable competitive advantage.