Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License?
Supplement to case HEC149. "Telemetrix" is a two-part case study; its parts can be used alone or in sequence. Case A "North-South Exports Lends a Helping Hand to Telemetrix: Mexico or Brazil?" showcases a young analyst at North-South Exports, a small Quebec-based export management firm that helps SMEs with international expansion. The analyst must make recommendations as to the best way for the company's client Telemetrix to rapidly achieve sales in Latin America, and whether to focus on Brazil or Mexico. Case B "Telemetrix in Brazil: Indirect Export, Outsourcing, or Licence?" focuses on the choice of an entry mode to penetrate a foreign market, in this case, Brazil, and, based on this choice, on the selection of a local business partner. It also addresses the difficulty of developing international supplier-customer relations. Just like Case A, Case B is a decision-making case. The analyst must determine the best entry mode and which partners will lead Telemetrix to success in Brazil and, subsequently, elsewhere in South America.
Swot Analysis of "Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License?" written by Aurelia Durand, Eleonore Kuentz includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Telemetrix Brazil facing as an external strategic factors. Some of the topics covered in Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? case study are - Strategic Management Strategies, and Global Business.
Some of the macro environment factors that can be used to understand the Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google, increasing energy prices, increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies,
geopolitical disruptions, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Telemetrix Brazil, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Telemetrix Brazil 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 Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? can be done for the following purposes –
1. Strategic planning using facts provided in Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? case study
2. Improving business portfolio management of Telemetrix Brazil
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 Telemetrix Brazil
Strengths Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Telemetrix Brazil in Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Telemetrix Brazil in the sector have low bargaining power. Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Telemetrix Brazil to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Telemetrix Brazil has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Telemetrix Brazil 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.
Learning organization
- Telemetrix Brazil 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 Telemetrix Brazil is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Telemetrix Brazil is present in almost all the verticals within the industry. This has provided firm in Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? 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.
High brand equity
– Telemetrix Brazil has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Telemetrix Brazil to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Telemetrix Brazil 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 Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Telemetrix Brazil in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Cross disciplinary teams
– Horizontal connected teams at the Telemetrix Brazil are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Training and development
– Telemetrix Brazil has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? 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.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Telemetrix Brazil digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Telemetrix Brazil 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.
Operational resilience
– The operational resilience strategy in the Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? 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.
Sustainable margins compare to other players in Global Business industry
– Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? firm has clearly differentiated products in the market place. This has enabled Telemetrix Brazil to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Telemetrix Brazil to invest into research and development (R&D) and innovation.
Weaknesses Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? are -
No frontier risks strategy
– After analyzing the HBR case study Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License?, 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.
Slow decision making process
– As mentioned earlier in the report, Telemetrix Brazil 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. Telemetrix Brazil even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License?, in the dynamic environment Telemetrix Brazil has struggled to respond to the nimble upstart competition. Telemetrix Brazil has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Need for greater diversity
– Telemetrix Brazil 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 bargaining power of channel partners
– Because of the regulatory requirements, Aurelia Durand, Eleonore Kuentz suggests that, Telemetrix Brazil 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Telemetrix Brazil 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 Telemetrix Brazil, firm in the HBR case study Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? 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 Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? can leverage the sales team experience to cultivate customer relationships as Telemetrix Brazil is planning to shift buying processes online.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Telemetrix Brazil supply chain. Even after few cautionary changes mentioned in the HBR case study - Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Telemetrix Brazil vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Telemetrix Brazil 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.
Increasing silos among functional specialists
– The organizational structure of Telemetrix Brazil is dominated by functional specialists. It is not different from other players in the Global Business segment. Telemetrix Brazil needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Telemetrix Brazil to focus more on services rather than just following the product oriented approach.
Opportunities Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? | 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 Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? are -
Leveraging digital technologies
– Telemetrix Brazil 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Telemetrix Brazil 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, Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License?, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Telemetrix Brazil is facing challenges because of the dominance of functional experts in the organization. Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? 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 Telemetrix Brazil has opened avenues for new revenue streams for the organization in the industry. This can help Telemetrix Brazil to build a more holistic ecosystem as suggested in the Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? case study. Telemetrix Brazil can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Telemetrix Brazil 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.
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 Telemetrix Brazil 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.
Buying journey improvements
– Telemetrix Brazil can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Telemetrix Brazil 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 Telemetrix Brazil to hire the very best people irrespective of their geographical location.
Manufacturing automation
– Telemetrix Brazil 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.
Better consumer reach
– The expansion of the 5G network will help Telemetrix Brazil to increase its market reach. Telemetrix Brazil 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Telemetrix Brazil can use these opportunities to build new business models that can help the communities that Telemetrix Brazil operates in. Secondly it can use opportunities from government spending in Global Business sector.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Telemetrix Brazil 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.
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. Telemetrix Brazil 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. Telemetrix Brazil 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 Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? are -
Regulatory challenges
– Telemetrix Brazil 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Telemetrix Brazil 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 Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? .
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Telemetrix Brazil with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 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. Telemetrix Brazil needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Technology acceleration in Forth Industrial Revolution
– Telemetrix Brazil has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Telemetrix Brazil 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.
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 Telemetrix Brazil in the Global Business sector and impact the bottomline of the organization.
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. Telemetrix Brazil 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.
Environmental challenges
– Telemetrix Brazil 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. Telemetrix Brazil 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 Telemetrix Brazil business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Telemetrix Brazil 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.
Stagnating economy with rate increase
– Telemetrix Brazil 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.
Weighted SWOT Analysis of Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? 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 Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? 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 Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? 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 Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? 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 Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? 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 Telemetrix Brazil needs to make to build a sustainable competitive advantage.