The Canadian Telecommunications: Industry Regulation and Policy SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Canadian Telecommunications: Industry Regulation and Policy
This case study is based on a high profile issue facing the Canadian Federal Government - still ongoing as of December 2010 - that had begun in 2008. Industry Canada, working from a set of policy objectives crafted over the period of three years, decided that, in the auction sale of wireless spectrum set for 2008, it would set aside 40 per cent of the spectrum for new entrants. This decision had come about because research indicated that Canadian usage of wireless services had lagged behind that of other developed countries and that this was primarily due to the high relative cost of wireless services. This was in contrast to only a decade earlier when Canada was seen as a global leader in the implementation of wireless technology. It is well understood that telecommunication adoption rates have a direct implication to the productivity of the Canadian economy. One of the new entrants was Globalive Communications Corporation (Globalive), a startup which was funded by Orascom Telecom Holding S.A.E. (Orascom), an Egyptian company. Despite the fact that Canada has well defined foreign ownership restrictions for the telecommunications sector, Globalive was allowed to bid. It won, and paid $442 million for its spectrum, began to hire hundreds of staff, and committed another $300 million to investing in wireless infrastructure.From the time Globalive applied to participate in the spectrum auction to the period prior to its official launch, the firm met several times with Industry Canada, the Canadian Radio-television and Telecommunications Commission (CRTC), and the Prime Minister's Office (PMO) to ensure that its ownership was structured so as to fit within the foreign ownership restrictions.
Swot Analysis of "The Canadian Telecommunications: Industry Regulation and Policy" written by Adam Fremeth, Ken Mark includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Globalive Wireless facing as an external strategic factors. Some of the topics covered in The Canadian Telecommunications: Industry Regulation and Policy case study are - Strategic Management Strategies, Strategic planning and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the The Canadian Telecommunications: Industry Regulation and Policy casestudy better are - – increasing household debt because of falling income levels, wage bills are increasing, central banks are concerned over increasing inflation, increasing transportation and logistics costs, there is increasing trade war between United States & China, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies,
supply chains are disrupted by pandemic , challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of The Canadian Telecommunications: Industry Regulation and Policy
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Canadian Telecommunications: Industry Regulation and Policy case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Globalive Wireless, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Globalive Wireless 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 The Canadian Telecommunications: Industry Regulation and Policy can be done for the following purposes –
1. Strategic planning using facts provided in The Canadian Telecommunications: Industry Regulation and Policy case study
2. Improving business portfolio management of Globalive Wireless
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 Globalive Wireless
Strengths The Canadian Telecommunications: Industry Regulation and Policy | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Globalive Wireless in The Canadian Telecommunications: Industry Regulation and Policy Harvard Business Review case study are -
Successful track record of launching new products
– Globalive Wireless has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Globalive Wireless 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.
Highly skilled collaborators
– Globalive Wireless 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 The Canadian Telecommunications: Industry Regulation and Policy 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 Globalive Wireless digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Globalive Wireless 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.
Effective Research and Development (R&D)
– Globalive Wireless 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 The Canadian Telecommunications: Industry Regulation and Policy - 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 The Canadian Telecommunications: Industry Regulation and Policy 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.
Low bargaining power of suppliers
– Suppliers of Globalive Wireless in the sector have low bargaining power. The Canadian Telecommunications: Industry Regulation and Policy has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Globalive Wireless to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Leadership & Managing People field
– Globalive Wireless 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 Globalive Wireless in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Strong track record of project management
– Globalive Wireless is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Leadership & Managing People industry
– The Canadian Telecommunications: Industry Regulation and Policy firm has clearly differentiated products in the market place. This has enabled Globalive Wireless to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Globalive Wireless to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Globalive Wireless is one of the leading recruiters in the industry. Managers in the The Canadian Telecommunications: Industry Regulation and Policy are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Globalive Wireless has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Canadian Telecommunications: Industry Regulation and Policy 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.
Innovation driven organization
– Globalive Wireless is one of the most innovative firm in sector. Manager in The Canadian Telecommunications: Industry Regulation and Policy Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses The Canadian Telecommunications: Industry Regulation and Policy | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Canadian Telecommunications: Industry Regulation and Policy are -
Workers concerns about automation
– As automation is fast increasing in the segment, Globalive Wireless 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Canadian Telecommunications: Industry Regulation and Policy, in the dynamic environment Globalive Wireless has struggled to respond to the nimble upstart competition. Globalive Wireless has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Globalive Wireless 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. Globalive Wireless 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 The Canadian Telecommunications: Industry Regulation and Policy, is just above the industry average. Globalive Wireless 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.
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 Globalive Wireless supply chain. Even after few cautionary changes mentioned in the HBR case study - The Canadian Telecommunications: Industry Regulation and Policy, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Globalive Wireless vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Globalive Wireless 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 cash cycle compare to competitors
Globalive Wireless 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 operating costs
– Compare to the competitors, firm in the HBR case study The Canadian Telecommunications: Industry Regulation and Policy 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 Globalive Wireless 's lucrative customers.
Products dominated business model
– Even though Globalive Wireless 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 - The Canadian Telecommunications: Industry Regulation and Policy should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Globalive Wireless, firm in the HBR case study The Canadian Telecommunications: Industry Regulation and Policy needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Globalive Wireless is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The Canadian Telecommunications: Industry Regulation and Policy 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 The Canadian Telecommunications: Industry Regulation and Policy | 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 The Canadian Telecommunications: Industry Regulation and Policy are -
Developing new processes and practices
– Globalive Wireless 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Globalive Wireless 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 Globalive Wireless 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 Globalive Wireless to hire the very best people irrespective of their geographical location.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Globalive Wireless 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, The Canadian Telecommunications: Industry Regulation and Policy, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Globalive Wireless is facing challenges because of the dominance of functional experts in the organization. The Canadian Telecommunications: Industry Regulation and Policy 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Globalive Wireless can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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 Globalive Wireless 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Globalive Wireless can use these opportunities to build new business models that can help the communities that Globalive Wireless operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Globalive Wireless 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.
Leveraging digital technologies
– Globalive Wireless can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Globalive Wireless 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. Globalive Wireless 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.
Building a culture of innovation
– managers at Globalive Wireless can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Leadership & Managing People segment.
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 Globalive Wireless in the consumer business. Now Globalive Wireless can target international markets with far fewer capital restrictions requirements than the existing system.
Threats The Canadian Telecommunications: Industry Regulation and Policy External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Canadian Telecommunications: Industry Regulation and Policy are -
Regulatory challenges
– Globalive Wireless 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.
Technology acceleration in Forth Industrial Revolution
– Globalive Wireless has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Globalive Wireless needs to keep up with the evolution of technology in the Leadership & Managing People 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.
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 Globalive Wireless business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Globalive Wireless 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.
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. Globalive Wireless 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.
Shortening product life cycle
– it is one of the major threat that Globalive Wireless is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Globalive Wireless 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.
Stagnating economy with rate increase
– Globalive Wireless 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.
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 Globalive Wireless.
Increasing wage structure of Globalive Wireless
– 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 Globalive Wireless.
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 Globalive Wireless with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Globalive Wireless 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.
Weighted SWOT Analysis of The Canadian Telecommunications: Industry Regulation and Policy 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 The Canadian Telecommunications: Industry Regulation and Policy 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 The Canadian Telecommunications: Industry Regulation and Policy 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 The Canadian Telecommunications: Industry Regulation and Policy 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 The Canadian Telecommunications: Industry Regulation and Policy 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 Globalive Wireless needs to make to build a sustainable competitive advantage.