Swot Analysis of "HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT" written by Ralf W. Seifert, Kerstin Langenberg includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Imd545 Hilti facing as an external strategic factors. Some of the topics covered in HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT casestudy better are - – wage bills are increasing, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels, technology disruption, increasing energy prices, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs,
digital marketing is dominated by two big players Facebook and Google, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Imd545 Hilti, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Imd545 Hilti 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 HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT can be done for the following purposes –
1. Strategic planning using facts provided in HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT case study
2. Improving business portfolio management of Imd545 Hilti
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Imd545 Hilti
Strengths HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Imd545 Hilti in HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT Harvard Business Review case study are -
High switching costs
– The high switching costs that Imd545 Hilti 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.
Ability to lead change in Leadership & Managing People field
– Imd545 Hilti 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 Imd545 Hilti in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Leadership & Managing People industry
– HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT firm has clearly differentiated products in the market place. This has enabled Imd545 Hilti to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Imd545 Hilti to invest into research and development (R&D) and innovation.
Analytics focus
– Imd545 Hilti 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 Ralf W. Seifert, Kerstin Langenberg 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.
Operational resilience
– The operational resilience strategy in the HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT 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
– Imd545 Hilti is one of the most innovative firm in sector. Manager in HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Imd545 Hilti has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT 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.
Effective Research and Development (R&D)
– Imd545 Hilti 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 HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Highly skilled collaborators
– Imd545 Hilti 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 HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Imd545 Hilti digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Imd545 Hilti 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.
Cross disciplinary teams
– Horizontal connected teams at the Imd545 Hilti 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.
Strong track record of project management
– Imd545 Hilti is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT are -
Low market penetration in new markets
– Outside its home market of Imd545 Hilti, firm in the HBR case study HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Imd545 Hilti 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. Imd545 Hilti 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT, is just above the industry average. Imd545 Hilti 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.
No frontier risks strategy
– After analyzing the HBR case study HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT 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 Imd545 Hilti has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Imd545 Hilti 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.
Need for greater diversity
– Imd545 Hilti 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Ralf W. Seifert, Kerstin Langenberg suggests that, Imd545 Hilti 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.
Slow to strategic competitive environment developments
– As HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT HBR case study mentions - Imd545 Hilti takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT, it seems that the employees of Imd545 Hilti 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Imd545 Hilti is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT 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 HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT | 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 HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Imd545 Hilti in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
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. Imd545 Hilti can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Imd545 Hilti 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. Imd545 Hilti 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, Imd545 Hilti is facing challenges because of the dominance of functional experts in the organization. HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT 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.
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 Imd545 Hilti in the consumer business. Now Imd545 Hilti can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Imd545 Hilti can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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
– Imd545 Hilti can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Imd545 Hilti can use these opportunities to build new business models that can help the communities that Imd545 Hilti operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Developing new processes and practices
– Imd545 Hilti can develop new processes and procedures in Leadership & Managing People 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 Imd545 Hilti to increase its market reach. Imd545 Hilti 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 Imd545 Hilti has opened avenues for new revenue streams for the organization in the industry. This can help Imd545 Hilti to build a more holistic ecosystem as suggested in the HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT case study. Imd545 Hilti 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
– Imd545 Hilti 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 HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Imd545 Hilti to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Imd545 Hilti 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.
Threats HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT are -
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 Imd545 Hilti business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Imd545 Hilti
– 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 Imd545 Hilti.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Imd545 Hilti in the Leadership & Managing People industry. The Leadership & Managing People 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.
Environmental challenges
– Imd545 Hilti 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. Imd545 Hilti can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
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. Imd545 Hilti 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.
Stagnating economy with rate increase
– Imd545 Hilti 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.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Imd545 Hilti can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT, Imd545 Hilti may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
High dependence on third party suppliers
– Imd545 Hilti 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.
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. Imd545 Hilti needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Regulatory challenges
– Imd545 Hilti 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 Leadership & Managing People industry regulations.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Imd545 Hilti with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT 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 HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT 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 HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT 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 HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT 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 HILTI (B): REFLECTIONS AND OUTLOOK SUPPLEMENT 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 Imd545 Hilti needs to make to build a sustainable competitive advantage.
