Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers
Dr. Bhavarlal Jain and his son Anil Jain are engaged in a discussion about long-term planning for Jain Irrigation Systems Limited (JISL)-a company engaged in micro-irrigation, processed foods and a range of other agronomical activities-with an emphasis on how the company will meet the challenges that the food system of the future presents: a changing climate; booming global population; the need for increased production of nutritious foods; and scarce land and water resources among many other challenges. Both Dr. and Anil Jain are trying to understand how they can take the success they have had in helping India's farmers boost production and productivity through JISL's micro-irrigation systems and continue to tailor their services to meet the needs of Indian farmers.
Authors :: Ray A. Goldberg, Carin-Isabel Knoop, Matthew Preble
Swot Analysis of "Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers" written by Ray A. Goldberg, Carin-Isabel Knoop, Matthew Preble includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Jain Irrigation facing as an external strategic factors. Some of the topics covered in Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers case study are - Strategic Management Strategies, Social enterprise and Global Business.
Some of the macro environment factors that can be used to understand the Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, challanges to central banks by blockchain based private currencies, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing, talent flight as more people leaving formal jobs,
competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Jain Irrigation, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Jain Irrigation 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 Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers can be done for the following purposes –
1. Strategic planning using facts provided in Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers case study
2. Improving business portfolio management of Jain Irrigation
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 Jain Irrigation
Strengths Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Jain Irrigation in Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Jain Irrigation in the sector have low bargaining power. Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Jain Irrigation to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Jain Irrigation
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Jain Irrigation does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Training and development
– Jain Irrigation has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers 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.
Highly skilled collaborators
– Jain Irrigation 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 Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Jain Irrigation 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 Jain Irrigation is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Jain Irrigation is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Analytics focus
– Jain Irrigation 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 Ray A. Goldberg, Carin-Isabel Knoop, Matthew Preble 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.
High brand equity
– Jain Irrigation has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Jain Irrigation to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Jain Irrigation is one of the most innovative firm in sector. Manager in Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers 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 Jain Irrigation in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Jain Irrigation digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Jain Irrigation 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.
Successful track record of launching new products
– Jain Irrigation has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Jain Irrigation 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.
Weaknesses Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers are -
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 Jain Irrigation supply chain. Even after few cautionary changes mentioned in the HBR case study - Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Jain Irrigation vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Jain Irrigation has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers, it seems that the employees of Jain Irrigation 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Jain Irrigation 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.
Increasing silos among functional specialists
– The organizational structure of Jain Irrigation is dominated by functional specialists. It is not different from other players in the Global Business segment. Jain Irrigation needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Jain Irrigation to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers, is just above the industry average. Jain Irrigation 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.
Lack of clear differentiation of Jain Irrigation products
– To increase the profitability and margins on the products, Jain Irrigation needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Jain Irrigation 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 - Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers 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 Jain Irrigation 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers, in the dynamic environment Jain Irrigation has struggled to respond to the nimble upstart competition. Jain Irrigation has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Need for greater diversity
– Jain Irrigation 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.
Opportunities Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers | 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 Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers are -
Learning at scale
– Online learning technologies has now opened space for Jain Irrigation 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.
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 Jain Irrigation 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.
Developing new processes and practices
– Jain Irrigation 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.
Leveraging digital technologies
– Jain Irrigation 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. Jain Irrigation 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. Jain Irrigation 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Jain Irrigation is facing challenges because of the dominance of functional experts in the organization. Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers 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
– Jain Irrigation 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Jain Irrigation 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, Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Jain Irrigation can use these opportunities to build new business models that can help the communities that Jain Irrigation operates in. Secondly it can use opportunities from government spending in Global Business sector.
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 Jain Irrigation in the consumer business. Now Jain Irrigation can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Jain Irrigation to increase its market reach. Jain Irrigation 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.
Creating value in data economy
– The success of analytics program of Jain Irrigation has opened avenues for new revenue streams for the organization in the industry. This can help Jain Irrigation to build a more holistic ecosystem as suggested in the Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers case study. Jain Irrigation can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Jain Irrigation 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 Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Jain Irrigation to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Threats Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Jain Irrigation 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 Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers .
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 Jain Irrigation.
Technology acceleration in Forth Industrial Revolution
– Jain Irrigation has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Jain Irrigation 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.
Environmental challenges
– Jain Irrigation 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. Jain Irrigation can take advantage of this fund but it will also bring new competitors in the Global Business industry.
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.
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. Jain Irrigation can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
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 Jain Irrigation business can come under increasing regulations regarding data privacy, data security, etc.
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. Jain Irrigation 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 wage structure of Jain Irrigation
– 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 Jain Irrigation.
Regulatory challenges
– Jain Irrigation 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Jain Irrigation with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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 Jain Irrigation in the Global Business sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers 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 Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers 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 Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers 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 Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers 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 Jain Irrigation Systems Limited: Inclusive Growth for India's Farmers 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 Jain Irrigation needs to make to build a sustainable competitive advantage.