TCS: An Entrepreneurial Air-Express Company in Pakistan SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of TCS: An Entrepreneurial Air-Express Company in Pakistan
Introduces Khalid Awan, co-founder of TCS, an entrepreneurial air-express company in Pakistan. Awan has succeeded in building a sizeable company despite serious obstacles, including pressure from the public postal system, an environment prone to corruption, and a nonexistent market for venture capital. The firm largely followed an organic financing strategy and made extensive use of leasing contracts. However, in the aftermath of September 11, 2001, Awan is now faced with a number of questions regarding further expansion of the firm. The tragic events of September 11 will most likely put pressure on the firm's revenues and create considerable uncertainty. Awan is also starting to think about diversification of his personal wealth, which is concentrated almost entirely in TCS. Decisions on all these issues will impact the firm's future financing policies and growth.
Swot Analysis of "TCS: An Entrepreneurial Air-Express Company in Pakistan" written by Walter Kuemmerle, Zahid Ahmed includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Awan Tcs facing as an external strategic factors. Some of the topics covered in TCS: An Entrepreneurial Air-Express Company in Pakistan case study are - Strategic Management Strategies, Business models, Emerging markets, Entrepreneurial finance, Growth strategy and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the TCS: An Entrepreneurial Air-Express Company in Pakistan casestudy better are - – increasing commodity prices, increasing household debt because of falling income levels, there is increasing trade war between United States & China, geopolitical disruptions, increasing government debt because of Covid-19 spendings, supply chains are disrupted by pandemic , increasing transportation and logistics costs,
talent flight as more people leaving formal jobs, there is backlash against globalization, etc
Introduction to SWOT Analysis of TCS: An Entrepreneurial Air-Express Company in Pakistan
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in TCS: An Entrepreneurial Air-Express Company in Pakistan case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Awan Tcs, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Awan Tcs 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 TCS: An Entrepreneurial Air-Express Company in Pakistan can be done for the following purposes –
1. Strategic planning using facts provided in TCS: An Entrepreneurial Air-Express Company in Pakistan case study
2. Improving business portfolio management of Awan Tcs
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 Awan Tcs
Strengths TCS: An Entrepreneurial Air-Express Company in Pakistan | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Awan Tcs in TCS: An Entrepreneurial Air-Express Company in Pakistan Harvard Business Review case study are -
High switching costs
– The high switching costs that Awan Tcs 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.
Superior customer experience
– The customer experience strategy of Awan Tcs in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Awan Tcs 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 TCS: An Entrepreneurial Air-Express Company in Pakistan HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Awan Tcs 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 TCS: An Entrepreneurial Air-Express Company in Pakistan - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the TCS: An Entrepreneurial Air-Express Company in Pakistan 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.
High brand equity
– Awan Tcs has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Awan Tcs to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Awan Tcs has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in TCS: An Entrepreneurial Air-Express Company in Pakistan 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.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– TCS: An Entrepreneurial Air-Express Company in Pakistan firm has clearly differentiated products in the market place. This has enabled Awan Tcs to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Awan Tcs to invest into research and development (R&D) and innovation.
Analytics focus
– Awan Tcs 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 Walter Kuemmerle, Zahid Ahmed 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.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Awan Tcs digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Awan Tcs 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.
Innovation driven organization
– Awan Tcs is one of the most innovative firm in sector. Manager in TCS: An Entrepreneurial Air-Express Company in Pakistan Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Awan Tcs is present in almost all the verticals within the industry. This has provided firm in TCS: An Entrepreneurial Air-Express Company in Pakistan 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.
Weaknesses TCS: An Entrepreneurial Air-Express Company in Pakistan | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of TCS: An Entrepreneurial Air-Express Company in Pakistan are -
Slow decision making process
– As mentioned earlier in the report, Awan Tcs 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. Awan Tcs 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.
High operating costs
– Compare to the competitors, firm in the HBR case study TCS: An Entrepreneurial Air-Express Company in Pakistan 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 Awan Tcs 's lucrative customers.
Interest costs
– Compare to the competition, Awan Tcs 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Awan Tcs 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Walter Kuemmerle, Zahid Ahmed suggests that, Awan Tcs 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.
Increasing silos among functional specialists
– The organizational structure of Awan Tcs is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Awan Tcs needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Awan Tcs to focus more on services rather than just following the product oriented approach.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study TCS: An Entrepreneurial Air-Express Company in Pakistan, in the dynamic environment Awan Tcs has struggled to respond to the nimble upstart competition. Awan Tcs has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study TCS: An Entrepreneurial Air-Express Company in Pakistan that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case TCS: An Entrepreneurial Air-Express Company in Pakistan can leverage the sales team experience to cultivate customer relationships as Awan Tcs is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Awan Tcs has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
No frontier risks strategy
– After analyzing the HBR case study TCS: An Entrepreneurial Air-Express Company in Pakistan, it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship 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.
Low market penetration in new markets
– Outside its home market of Awan Tcs, firm in the HBR case study TCS: An Entrepreneurial Air-Express Company in Pakistan needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities TCS: An Entrepreneurial Air-Express Company in Pakistan | 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 TCS: An Entrepreneurial Air-Express Company in Pakistan are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Awan Tcs 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.
Better consumer reach
– The expansion of the 5G network will help Awan Tcs to increase its market reach. Awan Tcs 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.
Developing new processes and practices
– Awan Tcs 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Awan Tcs 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 Awan Tcs to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Awan Tcs is facing challenges because of the dominance of functional experts in the organization. TCS: An Entrepreneurial Air-Express Company in Pakistan 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Awan Tcs can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Awan Tcs can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. TCS: An Entrepreneurial Air-Express Company in Pakistan 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.
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 Awan Tcs in the consumer business. Now Awan Tcs can target international markets with far fewer capital restrictions requirements than the existing system.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Awan Tcs can use these opportunities to build new business models that can help the communities that Awan Tcs operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
Creating value in data economy
– The success of analytics program of Awan Tcs has opened avenues for new revenue streams for the organization in the industry. This can help Awan Tcs to build a more holistic ecosystem as suggested in the TCS: An Entrepreneurial Air-Express Company in Pakistan case study. Awan Tcs can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Awan Tcs 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.
Manufacturing automation
– Awan Tcs 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Awan Tcs 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 TCS: An Entrepreneurial Air-Express Company in Pakistan External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study TCS: An Entrepreneurial Air-Express Company in Pakistan are -
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. Awan Tcs 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.
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. Awan Tcs needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Awan Tcs with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Awan Tcs
– 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 Awan Tcs.
High dependence on third party suppliers
– Awan Tcs 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.
Regulatory challenges
– Awan Tcs 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 Innovation & Entrepreneurship industry regulations.
Consumer confidence and its impact on Awan Tcs 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.
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.
Stagnating economy with rate increase
– Awan Tcs can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
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 Awan Tcs business can come under increasing regulations regarding data privacy, data security, 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.
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 Awan Tcs in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Awan Tcs 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 TCS: An Entrepreneurial Air-Express Company in Pakistan .
Weighted SWOT Analysis of TCS: An Entrepreneurial Air-Express Company in Pakistan 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 TCS: An Entrepreneurial Air-Express Company in Pakistan 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 TCS: An Entrepreneurial Air-Express Company in Pakistan 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 TCS: An Entrepreneurial Air-Express Company in Pakistan 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 TCS: An Entrepreneurial Air-Express Company in Pakistan 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 Awan Tcs needs to make to build a sustainable competitive advantage.