TriCiclos: The Challenge of Scaling Recycling in Latin America SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of TriCiclos: The Challenge of Scaling Recycling in Latin America
TriCiclos, a recycling company in Chile, and the first B Corporation in Latin America, is innovating the way business is understood and conducted. The chief executive officer is excited about the financial future of the company, including expansion into new geographic markets in Latin America. Nevertheless, different geographic markets bring a new set of challenges for a sustainable business: foreign governments with different laws and regulations for recycling and partnering with clients and recyclers, the need to establish partnerships with local recycling plants and, more importantly, how these variables affect the company's organizational mission and culture. Chris Laszlo is affiliated with Case Western Reserve University. Katherine Gullett is affiliated with Case Western Reserve University, Weatherhead School of Management.
Authors :: Chris Laszlo, Katherine Gullett, Ignacio Pavez, Maria Bello
Swot Analysis of "TriCiclos: The Challenge of Scaling Recycling in Latin America" written by Chris Laszlo, Katherine Gullett, Ignacio Pavez, Maria Bello includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Recycling Triciclos facing as an external strategic factors. Some of the topics covered in TriCiclos: The Challenge of Scaling Recycling in Latin America case study are - Strategic Management Strategies, Sustainability and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the TriCiclos: The Challenge of Scaling Recycling in Latin America casestudy better are - – central banks are concerned over increasing inflation, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, cloud computing is disrupting traditional business models, increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, geopolitical disruptions,
technology disruption, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of TriCiclos: The Challenge of Scaling Recycling in Latin America
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in TriCiclos: The Challenge of Scaling Recycling in Latin America case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Recycling Triciclos, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Recycling Triciclos 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 TriCiclos: The Challenge of Scaling Recycling in Latin America can be done for the following purposes –
1. Strategic planning using facts provided in TriCiclos: The Challenge of Scaling Recycling in Latin America case study
2. Improving business portfolio management of Recycling Triciclos
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 Recycling Triciclos
Strengths TriCiclos: The Challenge of Scaling Recycling in Latin America | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Recycling Triciclos in TriCiclos: The Challenge of Scaling Recycling in Latin America Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Recycling Triciclos are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Ability to recruit top talent
– Recycling Triciclos is one of the leading recruiters in the industry. Managers in the TriCiclos: The Challenge of Scaling Recycling in Latin America are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Recycling Triciclos digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Recycling Triciclos 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.
Successful track record of launching new products
– Recycling Triciclos has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Recycling Triciclos 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.
Superior customer experience
– The customer experience strategy of Recycling Triciclos in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Leadership & Managing People field
– Recycling Triciclos 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 Recycling Triciclos in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Recycling Triciclos has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Recycling Triciclos to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Recycling Triciclos 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 Chris Laszlo, Katherine Gullett, Ignacio Pavez, Maria Bello 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.
Strong track record of project management
– Recycling Triciclos is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Recycling Triciclos is one of the most innovative firm in sector. Manager in TriCiclos: The Challenge of Scaling Recycling in Latin America Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Recycling Triciclos 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.
Diverse revenue streams
– Recycling Triciclos is present in almost all the verticals within the industry. This has provided firm in TriCiclos: The Challenge of Scaling Recycling in Latin America 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 TriCiclos: The Challenge of Scaling Recycling in Latin America | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of TriCiclos: The Challenge of Scaling Recycling in Latin America are -
Increasing silos among functional specialists
– The organizational structure of Recycling Triciclos is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Recycling Triciclos needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Recycling Triciclos to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Recycling Triciclos 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the TriCiclos: The Challenge of Scaling Recycling in Latin America 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 Recycling Triciclos has relatively successful track record of launching new products.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study TriCiclos: The Challenge of Scaling Recycling in Latin America, it seems that the employees of Recycling Triciclos 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.
Lack of clear differentiation of Recycling Triciclos products
– To increase the profitability and margins on the products, Recycling Triciclos needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Recycling Triciclos 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.
Low market penetration in new markets
– Outside its home market of Recycling Triciclos, firm in the HBR case study TriCiclos: The Challenge of Scaling Recycling in Latin America 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, Recycling Triciclos is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study TriCiclos: The Challenge of Scaling Recycling in Latin America 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, Recycling Triciclos 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. Recycling Triciclos 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 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 Recycling Triciclos supply chain. Even after few cautionary changes mentioned in the HBR case study - TriCiclos: The Challenge of Scaling Recycling in Latin America, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Recycling Triciclos vulnerable to further global disruptions in South East Asia.
No frontier risks strategy
– After analyzing the HBR case study TriCiclos: The Challenge of Scaling Recycling in Latin America, 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.
Opportunities TriCiclos: The Challenge of Scaling Recycling in Latin America | 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 TriCiclos: The Challenge of Scaling Recycling in Latin America are -
Learning at scale
– Online learning technologies has now opened space for Recycling Triciclos 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.
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 Recycling Triciclos in the consumer business. Now Recycling Triciclos 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, Recycling Triciclos can use these opportunities to build new business models that can help the communities that Recycling Triciclos operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Buying journey improvements
– Recycling Triciclos can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. TriCiclos: The Challenge of Scaling Recycling in Latin America 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, Recycling Triciclos is facing challenges because of the dominance of functional experts in the organization. TriCiclos: The Challenge of Scaling Recycling in Latin America 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.
Better consumer reach
– The expansion of the 5G network will help Recycling Triciclos to increase its market reach. Recycling Triciclos 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.
Using analytics as competitive advantage
– Recycling Triciclos 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 TriCiclos: The Challenge of Scaling Recycling in Latin America - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Recycling Triciclos to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Recycling Triciclos 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Recycling Triciclos 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, TriCiclos: The Challenge of Scaling Recycling in Latin America, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Recycling Triciclos 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.
Leveraging digital technologies
– Recycling Triciclos 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.
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 Recycling Triciclos 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Recycling Triciclos 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.
Threats TriCiclos: The Challenge of Scaling Recycling in Latin America External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study TriCiclos: The Challenge of Scaling Recycling in Latin America are -
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. Recycling Triciclos can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Recycling Triciclos has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Recycling Triciclos 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.
Consumer confidence and its impact on Recycling Triciclos 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.
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. Recycling Triciclos 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. Recycling Triciclos needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Regulatory challenges
– Recycling Triciclos 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.
Shortening product life cycle
– it is one of the major threat that Recycling Triciclos is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Recycling Triciclos 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.
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 Recycling Triciclos business can come under increasing regulations regarding data privacy, data security, etc.
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 Recycling Triciclos.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study TriCiclos: The Challenge of Scaling Recycling in Latin America, Recycling Triciclos 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 .
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.
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.
Weighted SWOT Analysis of TriCiclos: The Challenge of Scaling Recycling in Latin America 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 TriCiclos: The Challenge of Scaling Recycling in Latin America 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 TriCiclos: The Challenge of Scaling Recycling in Latin America 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 TriCiclos: The Challenge of Scaling Recycling in Latin America 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 TriCiclos: The Challenge of Scaling Recycling in Latin America 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 Recycling Triciclos needs to make to build a sustainable competitive advantage.
