Case Study Description of inge watertechnologies, GmbH
Using the financing history and exit choices of a German clean-tech startup as a lens, this case explores the reasons why venture-backed entrepreneurship is much lower in Germany that the US, despite a robust SME sector and large-corporate innovation in Germany. It also shows the tight link between investor incentives and a startup's product market strategy, including differences between "pure-play" VCs and corporate venture capital investors.
Authors :: Ramana Nanda, Carin-Isabel Knoop, Markus Mittermaier
Swot Analysis of "inge watertechnologies, GmbH" written by Ramana Nanda, Carin-Isabel Knoop, Markus Mittermaier includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Watertechnologies Germany facing as an external strategic factors. Some of the topics covered in inge watertechnologies, GmbH case study are - Strategic Management Strategies, Financial management, Negotiations, Technology, Venture capital and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the inge watertechnologies, GmbH casestudy better are - – geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, there is increasing trade war between United States & China, increasing transportation and logistics costs, there is backlash against globalization, wage bills are increasing, increasing government debt because of Covid-19 spendings,
supply chains are disrupted by pandemic , increasing energy prices, etc
Introduction to SWOT Analysis of inge watertechnologies, GmbH
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in inge watertechnologies, GmbH case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Watertechnologies Germany, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Watertechnologies Germany 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 inge watertechnologies, GmbH can be done for the following purposes –
1. Strategic planning using facts provided in inge watertechnologies, GmbH case study
2. Improving business portfolio management of Watertechnologies Germany
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Watertechnologies Germany
Strengths inge watertechnologies, GmbH | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Watertechnologies Germany in inge watertechnologies, GmbH Harvard Business Review case study are -
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– inge watertechnologies, GmbH firm has clearly differentiated products in the market place. This has enabled Watertechnologies Germany to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Watertechnologies Germany to invest into research and development (R&D) and innovation.
High brand equity
– Watertechnologies Germany has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Watertechnologies Germany to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Watertechnologies Germany 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 Watertechnologies Germany is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in inge watertechnologies, GmbH Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Watertechnologies Germany 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.
Ability to lead change in Innovation & Entrepreneurship field
– Watertechnologies Germany 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 Watertechnologies Germany in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Operational resilience
– The operational resilience strategy in the inge watertechnologies, GmbH Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Innovation driven organization
– Watertechnologies Germany is one of the most innovative firm in sector. Manager in inge watertechnologies, GmbH 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
– Watertechnologies Germany 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 inge watertechnologies, GmbH HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Watertechnologies Germany has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Watertechnologies Germany 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.
Effective Research and Development (R&D)
– Watertechnologies Germany 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 inge watertechnologies, GmbH - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Watertechnologies Germany is present in almost all the verticals within the industry. This has provided firm in inge watertechnologies, GmbH 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 recruit top talent
– Watertechnologies Germany is one of the leading recruiters in the industry. Managers in the inge watertechnologies, GmbH are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses inge watertechnologies, GmbH | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of inge watertechnologies, GmbH are -
High cash cycle compare to competitors
Watertechnologies Germany 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the inge watertechnologies, GmbH 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 Watertechnologies Germany has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Watertechnologies Germany, firm in the HBR case study inge watertechnologies, GmbH needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Watertechnologies Germany products
– To increase the profitability and margins on the products, Watertechnologies Germany needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study inge watertechnologies, GmbH 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 Watertechnologies Germany 's lucrative customers.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Watertechnologies Germany supply chain. Even after few cautionary changes mentioned in the HBR case study - inge watertechnologies, GmbH, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Watertechnologies Germany vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Watertechnologies Germany 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Watertechnologies Germany is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study inge watertechnologies, GmbH can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Products dominated business model
– Even though Watertechnologies Germany 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 - inge watertechnologies, GmbH should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study inge watertechnologies, GmbH, in the dynamic environment Watertechnologies Germany has struggled to respond to the nimble upstart competition. Watertechnologies Germany has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Workers concerns about automation
– As automation is fast increasing in the segment, Watertechnologies Germany 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.
Opportunities inge watertechnologies, GmbH | 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 inge watertechnologies, GmbH are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Watertechnologies Germany in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
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 Watertechnologies Germany 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.
Loyalty marketing
– Watertechnologies Germany 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Watertechnologies Germany 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, inge watertechnologies, GmbH, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Watertechnologies Germany can develop new processes and procedures in Innovation & Entrepreneurship 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.
Using analytics as competitive advantage
– Watertechnologies Germany 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 inge watertechnologies, GmbH - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Watertechnologies Germany to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Watertechnologies Germany can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Watertechnologies Germany can use these opportunities to build new business models that can help the communities that Watertechnologies Germany operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Watertechnologies Germany 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. Watertechnologies Germany 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.
Creating value in data economy
– The success of analytics program of Watertechnologies Germany has opened avenues for new revenue streams for the organization in the industry. This can help Watertechnologies Germany to build a more holistic ecosystem as suggested in the inge watertechnologies, GmbH case study. Watertechnologies Germany can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Watertechnologies Germany can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship 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.
Buying journey improvements
– Watertechnologies Germany can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. inge watertechnologies, GmbH 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Watertechnologies Germany 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.
Threats inge watertechnologies, GmbH External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study inge watertechnologies, GmbH are -
Increasing wage structure of Watertechnologies Germany
– 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 Watertechnologies Germany.
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. Watertechnologies Germany needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study inge watertechnologies, GmbH, Watertechnologies Germany may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .
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 Watertechnologies Germany business can come under increasing regulations regarding data privacy, data security, etc.
Consumer confidence and its impact on Watertechnologies Germany 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.
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 Watertechnologies Germany.
Environmental challenges
– Watertechnologies Germany 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. Watertechnologies Germany can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Shortening product life cycle
– it is one of the major threat that Watertechnologies Germany is facing in Innovation & Entrepreneurship 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Watertechnologies Germany with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Easy access to finance
– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Watertechnologies Germany can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Watertechnologies Germany in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship 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.
Technology acceleration in Forth Industrial Revolution
– Watertechnologies Germany has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Watertechnologies Germany needs to keep up with the evolution of technology in the Innovation & Entrepreneurship 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.
Weighted SWOT Analysis of inge watertechnologies, GmbH 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 inge watertechnologies, GmbH 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 inge watertechnologies, GmbH 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 inge watertechnologies, GmbH 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 inge watertechnologies, GmbH 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 Watertechnologies Germany needs to make to build a sustainable competitive advantage.
