Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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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 - – wage bills are increasing, supply chains are disrupted by pandemic , increasing energy prices, increasing commodity prices, increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%,
customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, 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 -
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.
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.
Organizational Resilience of Telemetrix Brazil
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Telemetrix Brazil does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
Strong track record of project management
– Telemetrix Brazil 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
– Telemetrix Brazil is one of the most innovative firm in sector. Manager in Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
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.
Analytics focus
– Telemetrix Brazil 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 Aurelia Durand, Eleonore Kuentz 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
– Telemetrix Brazil 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 Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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.
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.
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 -
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 cash cycle compare to competitors
Telemetrix Brazil 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.
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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License?, it seems that the employees of Telemetrix Brazil don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? 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 Telemetrix Brazil has relatively successful track record of launching new products.
Lack of clear differentiation of Telemetrix Brazil products
– To increase the profitability and margins on the products, Telemetrix Brazil needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
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 operating costs
– Compare to the competitors, firm in the HBR case study Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? 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 Telemetrix Brazil 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Telemetrix Brazil is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow to strategic competitive environment developments
– As Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? HBR case study mentions - Telemetrix Brazil 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 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 -
Using analytics as competitive advantage
– Telemetrix Brazil 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 Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Telemetrix Brazil to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Telemetrix Brazil can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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.
Learning at scale
– Online learning technologies has now opened space for Telemetrix Brazil 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.
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.
Developing new processes and practices
– Telemetrix Brazil 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, 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.
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. Telemetrix Brazil can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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.
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.
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.
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.
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 -
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Telemetrix (B) - Telemetrix in Brazil: Indirect Export, Subcontract, or License?, Telemetrix Brazil 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 .
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.
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.
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.
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? .
Consumer confidence and its impact on Telemetrix Brazil 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Telemetrix Brazil 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.
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.
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.
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.
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.
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 Telemetrix Brazil.
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.