Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C)
Supplement to case IES202. Five months after the signing of a memorandum of understanding and with a delay of almost a year, Tata saw the first product of its cooperation with Fiat come out of the Ranjangaon plant. The company launched the new Indica Vista model equipped with the engine produced by the joint venture. With both the engine and the car itself assembled at the JV plant, the new Indica Vista was an important update of the model that had been first manufactured in 1998.
Swot Analysis of "Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C)" written by Africa Arino includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Indica Vista facing as an external strategic factors. Some of the topics covered in Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) case study are - Strategic Management Strategies, Manufacturing, Negotiations and Global Business.
Some of the macro environment factors that can be used to understand the Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing energy prices, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs,
technology disruption, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Indica Vista, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Indica Vista 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 Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) can be done for the following purposes –
1. Strategic planning using facts provided in Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) case study
2. Improving business portfolio management of Indica Vista
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 Indica Vista
Strengths Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Indica Vista in Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) Harvard Business Review case study are -
Learning organization
- Indica Vista 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 Indica Vista is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Indica Vista 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.
Low bargaining power of suppliers
– Suppliers of Indica Vista in the sector have low bargaining power. Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Indica Vista to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Indica Vista 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 Africa Arino 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.
Strong track record of project management
– Indica Vista is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Indica Vista is one of the leading recruiters in the industry. Managers in the Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Global Business industry
– Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) firm has clearly differentiated products in the market place. This has enabled Indica Vista to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Indica Vista to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) 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.
High switching costs
– The high switching costs that Indica Vista 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.
Innovation driven organization
– Indica Vista is one of the most innovative firm in sector. Manager in Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) 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 Indica Vista digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Indica Vista has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
High brand equity
– Indica Vista has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Indica Vista to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) are -
Increasing silos among functional specialists
– The organizational structure of Indica Vista is dominated by functional specialists. It is not different from other players in the Global Business segment. Indica Vista needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Indica Vista to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Indica Vista 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. Indica Vista 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
– Indica Vista 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.
Lack of clear differentiation of Indica Vista products
– To increase the profitability and margins on the products, Indica Vista needs to provide more differentiated products than what it is currently offering in the marketplace.
High bargaining power of channel partners
– Because of the regulatory requirements, Africa Arino suggests that, Indica Vista 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Indica Vista is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) 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 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 Indica Vista supply chain. Even after few cautionary changes mentioned in the HBR case study - Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Indica Vista vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Indica Vista, firm in the HBR case study Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) HBR case study mentions - Indica Vista 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Indica Vista 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C), in the dynamic environment Indica Vista has struggled to respond to the nimble upstart competition. Indica Vista has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) | 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 Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) are -
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Indica Vista 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. Indica Vista 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Indica Vista can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Developing new processes and practices
– Indica Vista 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.
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. Indica Vista can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Indica Vista 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 Indica Vista to hire the very best people irrespective of their geographical location.
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 Indica Vista 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.
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 Indica Vista in the consumer business. Now Indica Vista can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Indica Vista 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.
Better consumer reach
– The expansion of the 5G network will help Indica Vista to increase its market reach. Indica Vista 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.
Building a culture of innovation
– managers at Indica Vista 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Indica Vista can use these opportunities to build new business models that can help the communities that Indica Vista operates in. Secondly it can use opportunities from government spending in Global Business sector.
Manufacturing automation
– Indica Vista 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.
Creating value in data economy
– The success of analytics program of Indica Vista has opened avenues for new revenue streams for the organization in the industry. This can help Indica Vista to build a more holistic ecosystem as suggested in the Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) case study. Indica Vista can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) are -
Technology acceleration in Forth Industrial Revolution
– Indica Vista has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Indica Vista 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Indica Vista 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.
Increasing wage structure of Indica Vista
– 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 Indica Vista.
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Indica Vista can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Indica Vista.
Shortening product life cycle
– it is one of the major threat that Indica Vista is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Indica Vista 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. Indica Vista needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Indica Vista 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 Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C), Indica Vista 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 .
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 Indica Vista 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.
Weighted SWOT Analysis of Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) 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 Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) 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 Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) 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 Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) 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 Fiat's Strategic Alliance with Tata: Its Evolution from Tata's Perspective (C) 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 Indica Vista needs to make to build a sustainable competitive advantage.
