Swot Analysis of "Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B)" written by George C. Lodge, David B. Yoffie includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mcdonnell Collision facing as an external strategic factors. Some of the topics covered in Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) case study are - Strategic Management Strategies, Government, International business, Marketing and Global Business.
Some of the macro environment factors that can be used to understand the Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) casestudy better are - – there is backlash against globalization, talent flight as more people leaving formal jobs, cloud computing is disrupting traditional business models, increasing energy prices, challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mcdonnell Collision, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mcdonnell Collision 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 Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) can be done for the following purposes –
1. Strategic planning using facts provided in Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) case study
2. Improving business portfolio management of Mcdonnell Collision
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 Mcdonnell Collision
Strengths Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mcdonnell Collision in Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) Harvard Business Review case study are -
Ability to recruit top talent
– Mcdonnell Collision is one of the leading recruiters in the industry. Managers in the Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Mcdonnell Collision in the sector have low bargaining power. Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mcdonnell Collision to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Global Business industry
– Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) firm has clearly differentiated products in the market place. This has enabled Mcdonnell Collision to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Mcdonnell Collision to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Mcdonnell Collision 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.
Highly skilled collaborators
– Mcdonnell Collision 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 Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Superior customer experience
– The customer experience strategy of Mcdonnell Collision in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Mcdonnell Collision
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mcdonnell Collision does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Mcdonnell Collision is present in almost all the verticals within the industry. This has provided firm in Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) 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.
Ability to lead change in Global Business field
– Mcdonnell Collision 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 Mcdonnell Collision in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Innovation driven organization
– Mcdonnell Collision is one of the most innovative firm in sector. Manager in Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Mcdonnell Collision has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mcdonnell Collision 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.
Strong track record of project management
– Mcdonnell Collision is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) 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 Mcdonnell Collision has relatively successful track record of launching new products.
Products dominated business model
– Even though Mcdonnell Collision has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Mcdonnell Collision is dominated by functional specialists. It is not different from other players in the Global Business segment. Mcdonnell Collision needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Mcdonnell Collision to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Mcdonnell Collision 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.
Need for greater diversity
– Mcdonnell Collision 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.
Slow decision making process
– As mentioned earlier in the report, Mcdonnell Collision 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. Mcdonnell Collision 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.
Low market penetration in new markets
– Outside its home market of Mcdonnell Collision, firm in the HBR case study Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Workers concerns about automation
– As automation is fast increasing in the segment, Mcdonnell Collision 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.
Slow to strategic competitive environment developments
– As Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) HBR case study mentions - Mcdonnell Collision 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B), in the dynamic environment Mcdonnell Collision has struggled to respond to the nimble upstart competition. Mcdonnell Collision has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mcdonnell Collision is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) | 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 Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Mcdonnell Collision 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 Mcdonnell Collision to hire the very best people irrespective of their geographical location.
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. Mcdonnell Collision 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. Mcdonnell Collision 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.
Loyalty marketing
– Mcdonnell Collision 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.
Learning at scale
– Online learning technologies has now opened space for Mcdonnell Collision 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.
Creating value in data economy
– The success of analytics program of Mcdonnell Collision has opened avenues for new revenue streams for the organization in the industry. This can help Mcdonnell Collision to build a more holistic ecosystem as suggested in the Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) case study. Mcdonnell Collision can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Mcdonnell Collision in the consumer business. Now Mcdonnell Collision 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 Mcdonnell Collision 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mcdonnell Collision is facing challenges because of the dominance of functional experts in the organization. Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) 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.
Manufacturing automation
– Mcdonnell Collision 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.
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. Mcdonnell Collision can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Mcdonnell Collision to increase its market reach. Mcdonnell Collision 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.
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 Mcdonnell Collision 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mcdonnell Collision can use these opportunities to build new business models that can help the communities that Mcdonnell Collision operates in. Secondly it can use opportunities from government spending in Global Business sector.
Threats Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) are -
High dependence on third party suppliers
– Mcdonnell Collision 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.
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 Mcdonnell Collision in the Global Business sector and impact the bottomline of the organization.
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 Mcdonnell Collision.
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. Mcdonnell Collision 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Mcdonnell Collision 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 Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) .
Regulatory challenges
– Mcdonnell Collision 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.
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 Mcdonnell Collision business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Mcdonnell Collision is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Mcdonnell Collision
– 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 Mcdonnell Collision.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mcdonnell Collision with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Mcdonnell Collision 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. Mcdonnell Collision needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) 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 Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) 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 Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) 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 Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) 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 Collision Course in Commercial Aircraft: Boeing-Airbus-McDonnell Douglas--1991 (B) 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 Mcdonnell Collision needs to make to build a sustainable competitive advantage.
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