Antrix Corporation Limited: A strategy for the global market SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Antrix Corporation Limited: A strategy for the global market
Antrix is the marketing arm of the Indian government space agency. The company slowly established a track record for technical capability in the manufacture and launch of satellites, apart from supplying remote sensing data from its own satellites, for international clients. Seeing opportunities in the global commercial space industry, the company decided to set market share goals to pursue the segments of satellite manufacturing, satellite services and launch services globally. However, as a government-owned company that relies on a network of other government agencies for its manufacturing and services, it is not clear that the company has either picked its segments and goals carefully, or whether it has the organizational capabilities to deliver on its ambitions. The Managing Director is faced with the challenge of aligning organizational capabilities to take advantage of global opportunities.
Swot Analysis of "Antrix Corporation Limited: A strategy for the global market" written by C. Gopinath, L. Surendra includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Antrix Satellites facing as an external strategic factors. Some of the topics covered in Antrix Corporation Limited: A strategy for the global market case study are - Strategic Management Strategies, Corporate governance, Government, International business and Global Business.
Some of the macro environment factors that can be used to understand the Antrix Corporation Limited: A strategy for the global market casestudy better are - – supply chains are disrupted by pandemic , increasing commodity prices, there is backlash against globalization, increasing energy prices, increasing government debt because of Covid-19 spendings, increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies,
talent flight as more people leaving formal jobs, technology disruption, etc
Introduction to SWOT Analysis of Antrix Corporation Limited: A strategy for the global market
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Antrix Corporation Limited: A strategy for the global market case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Antrix Satellites, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Antrix Satellites 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 Antrix Corporation Limited: A strategy for the global market can be done for the following purposes –
1. Strategic planning using facts provided in Antrix Corporation Limited: A strategy for the global market case study
2. Improving business portfolio management of Antrix Satellites
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 Antrix Satellites
Strengths Antrix Corporation Limited: A strategy for the global market | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Antrix Satellites in Antrix Corporation Limited: A strategy for the global market Harvard Business Review case study are -
Diverse revenue streams
– Antrix Satellites is present in almost all the verticals within the industry. This has provided firm in Antrix Corporation Limited: A strategy for the global market 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.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Antrix Satellites digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Antrix Satellites 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 lead change in Global Business field
– Antrix Satellites is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Antrix Satellites in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Learning organization
- Antrix Satellites 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 Antrix Satellites is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Antrix Corporation Limited: A strategy for the global market Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Antrix Satellites 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 C. Gopinath, L. Surendra 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.
Cross disciplinary teams
– Horizontal connected teams at the Antrix Satellites 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 Antrix Satellites in the sector have low bargaining power. Antrix Corporation Limited: A strategy for the global market has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Antrix Satellites to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Antrix Satellites 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.
Effective Research and Development (R&D)
– Antrix Satellites 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 Antrix Corporation Limited: A strategy for the global market - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Antrix Satellites is one of the most innovative firm in sector. Manager in Antrix Corporation Limited: A strategy for the global market Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Highly skilled collaborators
– Antrix Satellites 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 Antrix Corporation Limited: A strategy for the global market HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Antrix Satellites has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Antrix Satellites to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Antrix Corporation Limited: A strategy for the global market | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Antrix Corporation Limited: A strategy for the global market are -
High bargaining power of channel partners
– Because of the regulatory requirements, C. Gopinath, L. Surendra suggests that, Antrix Satellites 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.
No frontier risks strategy
– After analyzing the HBR case study Antrix Corporation Limited: A strategy for the global market, 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.
Lack of clear differentiation of Antrix Satellites products
– To increase the profitability and margins on the products, Antrix Satellites needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Antrix Satellites 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, Antrix Satellites 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. Antrix Satellites 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Antrix Corporation Limited: A strategy for the global market, is just above the industry average. Antrix Satellites 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 dependence on star products
– The top 2 products and services of the firm as mentioned in the Antrix Corporation Limited: A strategy for the global market 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 Antrix Satellites has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Antrix Satellites has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Antrix Corporation Limited: A strategy for the global market, in the dynamic environment Antrix Satellites has struggled to respond to the nimble upstart competition. Antrix Satellites has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Antrix Satellites 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Antrix Corporation Limited: A strategy for the global market, it seems that the employees of Antrix Satellites 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.
Opportunities Antrix Corporation Limited: A strategy for the global market | 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 Antrix Corporation Limited: A strategy for the global market are -
Loyalty marketing
– Antrix Satellites has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Antrix Satellites can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Antrix Satellites 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 Antrix Satellites 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 Antrix Satellites 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.
Using analytics as competitive advantage
– Antrix Satellites 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 Antrix Corporation Limited: A strategy for the global market - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Antrix Satellites to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Antrix Satellites can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Antrix Corporation Limited: A strategy for the global market 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.
Leveraging digital technologies
– Antrix Satellites 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.
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. Antrix Satellites 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. Antrix Satellites 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Antrix Satellites can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
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. Antrix Satellites can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Antrix Satellites 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Antrix Satellites 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.
Manufacturing automation
– Antrix Satellites 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.
Threats Antrix Corporation Limited: A strategy for the global market External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Antrix Corporation Limited: A strategy for the global market are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Antrix Satellites 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 Antrix Corporation Limited: A strategy for the global market .
Shortening product life cycle
– it is one of the major threat that Antrix Satellites 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 Antrix Satellites 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Antrix Corporation Limited: A strategy for the global market, Antrix Satellites 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 .
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. Antrix Satellites can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Antrix Satellites 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.
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. Antrix Satellites 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 Antrix Satellites.
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.
Consumer confidence and its impact on Antrix Satellites 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.
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. Antrix Satellites needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Antrix Satellites 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.
Increasing wage structure of Antrix Satellites
– 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 Antrix Satellites.
Weighted SWOT Analysis of Antrix Corporation Limited: A strategy for the global market 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 Antrix Corporation Limited: A strategy for the global market 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 Antrix Corporation Limited: A strategy for the global market 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 Antrix Corporation Limited: A strategy for the global market 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 Antrix Corporation Limited: A strategy for the global market 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 Antrix Satellites needs to make to build a sustainable competitive advantage.
