SMRT Trains - Managing Operations and Service Quality SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of SMRT Trains - Managing Operations and Service Quality
This case deals with the service operations and quality management issues faced by SMRT Trains, one of the rapid transit rail operators in Singapore. The trigger point for the case was the occurrence of two massive service disruptions on December 15, 2011 and December 17, 2011, respectively. Even though the rail line that faced the disruption had been in existence for over two decades, this was the first time that multiple disruptions of such massive impact (five hours or more of loss of service) occurred and impacted commuters widely across Singapore. The case delves into quality management, service operations and root cause analysis.
Swot Analysis of "SMRT Trains - Managing Operations and Service Quality" written by S. Viswanathan, D.G. Allampalli includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Smrt Disruptions facing as an external strategic factors. Some of the topics covered in SMRT Trains - Managing Operations and Service Quality case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the SMRT Trains - Managing Operations and Service Quality casestudy better are - – cloud computing is disrupting traditional business models, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, geopolitical disruptions,
challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of SMRT Trains - Managing Operations and Service Quality
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in SMRT Trains - Managing Operations and Service Quality case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Smrt Disruptions, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Smrt Disruptions 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 SMRT Trains - Managing Operations and Service Quality can be done for the following purposes –
1. Strategic planning using facts provided in SMRT Trains - Managing Operations and Service Quality case study
2. Improving business portfolio management of Smrt Disruptions
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 Smrt Disruptions
Strengths SMRT Trains - Managing Operations and Service Quality | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Smrt Disruptions in SMRT Trains - Managing Operations and Service Quality Harvard Business Review case study are -
Organizational Resilience of Smrt Disruptions
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Smrt Disruptions does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Smrt Disruptions is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Smrt Disruptions 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.
Successful track record of launching new products
– Smrt Disruptions has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Smrt Disruptions 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.
Ability to lead change in Leadership & Managing People field
– Smrt Disruptions 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 Smrt Disruptions in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Smrt Disruptions 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 Smrt Disruptions in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Smrt Disruptions 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 SMRT Trains - Managing Operations and Service Quality - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Smrt Disruptions 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 Smrt Disruptions is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in SMRT Trains - Managing Operations and Service Quality Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Smrt Disruptions digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Smrt Disruptions 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.
High brand equity
– Smrt Disruptions has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Smrt Disruptions to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Smrt Disruptions in the sector have low bargaining power. SMRT Trains - Managing Operations and Service Quality has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Smrt Disruptions to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses SMRT Trains - Managing Operations and Service Quality | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of SMRT Trains - Managing Operations and Service Quality are -
High bargaining power of channel partners
– Because of the regulatory requirements, S. Viswanathan, D.G. Allampalli suggests that, Smrt Disruptions 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Smrt Disruptions 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 operating costs
– Compare to the competitors, firm in the HBR case study SMRT Trains - Managing Operations and Service Quality 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 Smrt Disruptions '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 Smrt Disruptions supply chain. Even after few cautionary changes mentioned in the HBR case study - SMRT Trains - Managing Operations and Service Quality, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Smrt Disruptions vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Smrt Disruptions 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Smrt Disruptions is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study SMRT Trains - Managing Operations and Service Quality can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Smrt Disruptions 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. Smrt Disruptions 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.
Skills based hiring
– The stress on hiring functional specialists at Smrt Disruptions has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study SMRT Trains - Managing Operations and Service Quality, it seems that the employees of Smrt Disruptions 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.
Aligning sales with marketing
– It come across in the case study SMRT Trains - Managing Operations and Service Quality 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 SMRT Trains - Managing Operations and Service Quality can leverage the sales team experience to cultivate customer relationships as Smrt Disruptions is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Smrt Disruptions, firm in the HBR case study SMRT Trains - Managing Operations and Service Quality needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities SMRT Trains - Managing Operations and Service Quality | 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 SMRT Trains - Managing Operations and Service Quality are -
Manufacturing automation
– Smrt Disruptions 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.
Better consumer reach
– The expansion of the 5G network will help Smrt Disruptions to increase its market reach. Smrt Disruptions 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Smrt Disruptions 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.
Creating value in data economy
– The success of analytics program of Smrt Disruptions has opened avenues for new revenue streams for the organization in the industry. This can help Smrt Disruptions to build a more holistic ecosystem as suggested in the SMRT Trains - Managing Operations and Service Quality case study. Smrt Disruptions can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Smrt Disruptions 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.
Developing new processes and practices
– Smrt Disruptions 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Smrt Disruptions 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 Smrt Disruptions to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Smrt Disruptions can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. SMRT Trains - Managing Operations and Service Quality 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Smrt Disruptions is facing challenges because of the dominance of functional experts in the organization. SMRT Trains - Managing Operations and Service Quality 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.
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 Smrt Disruptions 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.
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 Smrt Disruptions in the consumer business. Now Smrt Disruptions can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Smrt Disruptions 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 SMRT Trains - Managing Operations and Service Quality - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Smrt Disruptions to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Smrt Disruptions 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. Smrt Disruptions 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.
Threats SMRT Trains - Managing Operations and Service Quality External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study SMRT Trains - Managing Operations and Service Quality are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Smrt Disruptions 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 SMRT Trains - Managing Operations and Service Quality .
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 Smrt Disruptions.
Regulatory challenges
– Smrt Disruptions 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.
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 Smrt Disruptions 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.
Consumer confidence and its impact on Smrt Disruptions 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
– Smrt Disruptions 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. Smrt Disruptions can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Smrt Disruptions 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Smrt Disruptions 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.
Shortening product life cycle
– it is one of the major threat that Smrt Disruptions is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study SMRT Trains - Managing Operations and Service Quality, Smrt Disruptions 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 .
Weighted SWOT Analysis of SMRT Trains - Managing Operations and Service Quality 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 SMRT Trains - Managing Operations and Service Quality 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 SMRT Trains - Managing Operations and Service Quality 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 SMRT Trains - Managing Operations and Service Quality 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 SMRT Trains - Managing Operations and Service Quality 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 Smrt Disruptions needs to make to build a sustainable competitive advantage.