Can Bollywood Go Global? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Can Bollywood Go Global?
Considers the opportunities and challenges facing Indian film producers in accessing the global film market. Provides a historical context by describing the history of the cinema and the rise of Hollywood to global dominance by the 1920s. Although film industries continued elsewhere, including Great Britain and France, their products had limited international appeal. Discusses the rise of the Indian film industry and the industry structure. Bollywood films, produced in Mumbai (formerly Bombay), are the most well-known genre. They are typically long, melodramatic, and musical. There are also regional language films produced in Chennai, independent films, and "crossover" films, typically incorporating the experience of the Diaspora in Western countries. Bollywood films in particular have sold well in Southeast Asia and among the Indian Diaspora. Raises the issue whether Indian content films can compete with Hollywood in global markets and to what extent a change in content is necessary for this strategy to work.
Swot Analysis of "Can Bollywood Go Global?" written by Geoffrey G. Jones, Surachita Mishra, Namrata Arora, Alexis Lefort includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Films Bollywood facing as an external strategic factors. Some of the topics covered in Can Bollywood Go Global? case study are - Strategic Management Strategies, Competition, Globalization, Product development and Global Business.
Some of the macro environment factors that can be used to understand the Can Bollywood Go Global? casestudy better are - – cloud computing is disrupting traditional business models, increasing transportation and logistics costs, wage bills are increasing, there is increasing trade war between United States & China, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, etc
Introduction to SWOT Analysis of Can Bollywood Go Global?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Can Bollywood Go Global? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Films Bollywood, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Films Bollywood 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 Can Bollywood Go Global? can be done for the following purposes –
1. Strategic planning using facts provided in Can Bollywood Go Global? case study
2. Improving business portfolio management of Films Bollywood
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 Films Bollywood
Strengths Can Bollywood Go Global? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Films Bollywood in Can Bollywood Go Global? Harvard Business Review case study are -
Innovation driven organization
– Films Bollywood is one of the most innovative firm in sector. Manager in Can Bollywood Go Global? Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Effective Research and Development (R&D)
– Films Bollywood 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 Can Bollywood Go Global? - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Films Bollywood has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Films Bollywood to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Films Bollywood digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Films Bollywood 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.
Diverse revenue streams
– Films Bollywood is present in almost all the verticals within the industry. This has provided firm in Can Bollywood Go Global? 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.
High switching costs
– The high switching costs that Films Bollywood 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.
Successful track record of launching new products
– Films Bollywood has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Films Bollywood 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.
Low bargaining power of suppliers
– Suppliers of Films Bollywood in the sector have low bargaining power. Can Bollywood Go Global? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Films Bollywood to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Films Bollywood in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Films Bollywood is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Films Bollywood 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.
Learning organization
- Films Bollywood 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 Films Bollywood is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Can Bollywood Go Global? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Can Bollywood Go Global? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Can Bollywood Go Global? are -
High operating costs
– Compare to the competitors, firm in the HBR case study Can Bollywood Go Global? 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 Films Bollywood 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Can Bollywood Go Global?, in the dynamic environment Films Bollywood has struggled to respond to the nimble upstart competition. Films Bollywood has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Films Bollywood, firm in the HBR case study Can Bollywood Go Global? needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Films Bollywood 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 - Can Bollywood Go Global? should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Films Bollywood products
– To increase the profitability and margins on the products, Films Bollywood needs to provide more differentiated products than what it is currently offering in the marketplace.
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 Films Bollywood supply chain. Even after few cautionary changes mentioned in the HBR case study - Can Bollywood Go Global?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Films Bollywood vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of Films Bollywood is dominated by functional specialists. It is not different from other players in the Global Business segment. Films Bollywood needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Films Bollywood to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Geoffrey G. Jones, Surachita Mishra, Namrata Arora, Alexis Lefort suggests that, Films Bollywood 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 Can Bollywood Go Global?, 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Can Bollywood Go Global?, is just above the industry average. Films Bollywood 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Films Bollywood is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Can Bollywood Go Global? 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 Can Bollywood Go Global? | 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 Can Bollywood Go Global? are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Films Bollywood 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. Films Bollywood can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Films Bollywood 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 Films Bollywood to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Films Bollywood can use these opportunities to build new business models that can help the communities that Films Bollywood operates in. Secondly it can use opportunities from government spending in Global Business sector.
Developing new processes and practices
– Films Bollywood 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.
Better consumer reach
– The expansion of the 5G network will help Films Bollywood to increase its market reach. Films Bollywood 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Films Bollywood is facing challenges because of the dominance of functional experts in the organization. Can Bollywood Go Global? 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Films Bollywood in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Films Bollywood 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, Can Bollywood Go Global?, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Films Bollywood 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 Can Bollywood Go Global? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Films Bollywood to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Films Bollywood 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.
Buying journey improvements
– Films Bollywood can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Can Bollywood Go Global? 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
– Films Bollywood 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.
Threats Can Bollywood Go Global? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Can Bollywood Go Global? are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Films Bollywood 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 Can Bollywood Go Global? .
Shortening product life cycle
– it is one of the major threat that Films Bollywood 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 Films Bollywood 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.
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. Films Bollywood can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Films Bollywood 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.
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 Films Bollywood in the Global Business sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Can Bollywood Go Global?, Films Bollywood 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 .
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.
Technology acceleration in Forth Industrial Revolution
– Films Bollywood has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Films Bollywood 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 Films Bollywood with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Films Bollywood 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. Films Bollywood 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.
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 Films Bollywood business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Can Bollywood Go Global? 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 Can Bollywood Go Global? 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 Can Bollywood Go Global? 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 Can Bollywood Go Global? 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 Can Bollywood Go Global? 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 Films Bollywood needs to make to build a sustainable competitive advantage.