Swot Analysis of "TNT Ltd.'s Logistics Services in Asia (C), "The Grind"" written by Michael Y. Yoshino, Carin-Isabel Knoop includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Grind Tnt facing as an external strategic factors. Some of the topics covered in TNT Ltd.'s Logistics Services in Asia (C), "The Grind" case study are - Strategic Management Strategies, Joint ventures, Operations management and Global Business.
Some of the macro environment factors that can be used to understand the TNT Ltd.'s Logistics Services in Asia (C), "The Grind" casestudy better are - – increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China, technology disruption, talent flight as more people leaving formal jobs, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models,
competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of TNT Ltd.'s Logistics Services in Asia (C), "The Grind"
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in TNT Ltd.'s Logistics Services in Asia (C), "The Grind" case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Grind Tnt, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Grind Tnt 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 TNT Ltd.'s Logistics Services in Asia (C), "The Grind" can be done for the following purposes –
1. Strategic planning using facts provided in TNT Ltd.'s Logistics Services in Asia (C), "The Grind" case study
2. Improving business portfolio management of Grind Tnt
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 Grind Tnt
Strengths TNT Ltd.'s Logistics Services in Asia (C), "The Grind" | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Grind Tnt in TNT Ltd.'s Logistics Services in Asia (C), "The Grind" Harvard Business Review case study are -
Highly skilled collaborators
– Grind Tnt 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 TNT Ltd.'s Logistics Services in Asia (C), "The Grind" HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Grind Tnt has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Grind Tnt 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.
High switching costs
– The high switching costs that Grind Tnt 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.
Sustainable margins compare to other players in Global Business industry
– TNT Ltd.'s Logistics Services in Asia (C), "The Grind" firm has clearly differentiated products in the market place. This has enabled Grind Tnt to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Grind Tnt to invest into research and development (R&D) and innovation.
Innovation driven organization
– Grind Tnt is one of the most innovative firm in sector. Manager in TNT Ltd.'s Logistics Services in Asia (C), "The Grind" Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Grind Tnt digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Grind Tnt 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.
Ability to recruit top talent
– Grind Tnt is one of the leading recruiters in the industry. Managers in the TNT Ltd.'s Logistics Services in Asia (C), "The Grind" are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Grind Tnt in the sector have low bargaining power. TNT Ltd.'s Logistics Services in Asia (C), "The Grind" has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Grind Tnt to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the TNT Ltd.'s Logistics Services in Asia (C), "The Grind" 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
– Grind Tnt is present in almost all the verticals within the industry. This has provided firm in TNT Ltd.'s Logistics Services in Asia (C), "The Grind" 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.
Cross disciplinary teams
– Horizontal connected teams at the Grind Tnt 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.
Organizational Resilience of Grind Tnt
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Grind Tnt does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses TNT Ltd.'s Logistics Services in Asia (C), "The Grind" | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of TNT Ltd.'s Logistics Services in Asia (C), "The Grind" are -
Products dominated business model
– Even though Grind Tnt 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 - TNT Ltd.'s Logistics Services in Asia (C), "The Grind" should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study TNT Ltd.'s Logistics Services in Asia (C), "The Grind", is just above the industry average. Grind Tnt 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.
High cash cycle compare to competitors
Grind Tnt 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.
Slow decision making process
– As mentioned earlier in the report, Grind Tnt 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. Grind Tnt 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.
Need for greater diversity
– Grind Tnt 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.
Aligning sales with marketing
– It come across in the case study TNT Ltd.'s Logistics Services in Asia (C), "The Grind" 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 TNT Ltd.'s Logistics Services in Asia (C), "The Grind" can leverage the sales team experience to cultivate customer relationships as Grind Tnt is planning to shift buying processes online.
Skills based hiring
– The stress on hiring functional specialists at Grind Tnt 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.
High operating costs
– Compare to the competitors, firm in the HBR case study TNT Ltd.'s Logistics Services in Asia (C), "The Grind" 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 Grind Tnt 's lucrative customers.
Lack of clear differentiation of Grind Tnt products
– To increase the profitability and margins on the products, Grind Tnt needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Grind Tnt is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study TNT Ltd.'s Logistics Services in Asia (C), "The Grind" can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Michael Y. Yoshino, Carin-Isabel Knoop suggests that, Grind Tnt 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.
Opportunities TNT Ltd.'s Logistics Services in Asia (C), "The Grind" | 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 TNT Ltd.'s Logistics Services in Asia (C), "The Grind" are -
Leveraging digital technologies
– Grind Tnt 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Grind Tnt can use these opportunities to build new business models that can help the communities that Grind Tnt operates in. Secondly it can use opportunities from government spending in Global Business sector.
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 Grind Tnt in the consumer business. Now Grind Tnt can target international markets with far fewer capital restrictions requirements than the existing system.
Building a culture of innovation
– managers at Grind Tnt 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.
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. Grind Tnt can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Grind Tnt to increase its market reach. Grind Tnt 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.
Manufacturing automation
– Grind Tnt 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
– Grind Tnt 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Grind Tnt is facing challenges because of the dominance of functional experts in the organization. TNT Ltd.'s Logistics Services in Asia (C), "The Grind" 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Grind Tnt can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Grind Tnt can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Grind Tnt has opened avenues for new revenue streams for the organization in the industry. This can help Grind Tnt to build a more holistic ecosystem as suggested in the TNT Ltd.'s Logistics Services in Asia (C), "The Grind" case study. Grind Tnt can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Grind Tnt 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 TNT Ltd.'s Logistics Services in Asia (C), "The Grind" - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Grind Tnt to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats TNT Ltd.'s Logistics Services in Asia (C), "The Grind" External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study TNT Ltd.'s Logistics Services in Asia (C), "The Grind" are -
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. Grind Tnt needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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 Grind Tnt in the Global Business sector and impact the bottomline of the organization.
Regulatory challenges
– Grind Tnt 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. Grind Tnt 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.
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 Grind Tnt.
Shortening product life cycle
– it is one of the major threat that Grind Tnt is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Grind Tnt 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 TNT Ltd.'s Logistics Services in Asia (C), "The Grind" .
Consumer confidence and its impact on Grind Tnt 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.
Technology acceleration in Forth Industrial Revolution
– Grind Tnt has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Grind Tnt 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.
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.
Stagnating economy with rate increase
– Grind Tnt 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 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.
High dependence on third party suppliers
– Grind Tnt 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.
Weighted SWOT Analysis of TNT Ltd.'s Logistics Services in Asia (C), "The Grind" 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 TNT Ltd.'s Logistics Services in Asia (C), "The Grind" 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 TNT Ltd.'s Logistics Services in Asia (C), "The Grind" 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 TNT Ltd.'s Logistics Services in Asia (C), "The Grind" 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 TNT Ltd.'s Logistics Services in Asia (C), "The Grind" 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 Grind Tnt needs to make to build a sustainable competitive advantage.