Case Study Description of Lagos Metropolitan Area Transportation Authority (LAMATA)
In 2011 the World Bank and others were concerned that cities all over the developing world were losing their battle with increasing traffic congestion in part because they lacked institutions that had the authority and the capacity to promote public transportation in an integrated fashion. Lagos was one of the few major cities in the developing world to have a metropolitan area public transportation authority with broad powers, independent resources and a staff of international quality. The Lagos Metropolitan Area Transportation Authority (LAMATA) had some early successes but other agencies were expanding their roles raising the question as to how LAMATA's success could be maintained and replicated. Case number 2052.0
Swot Analysis of "Lagos Metropolitan Area Transportation Authority (LAMATA)" written by Jose Gomez-Ibanez includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Lagos Authority facing as an external strategic factors. Some of the topics covered in Lagos Metropolitan Area Transportation Authority (LAMATA) case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Lagos Metropolitan Area Transportation Authority (LAMATA) casestudy better are - – increasing transportation and logistics costs, cloud computing is disrupting traditional business models, geopolitical disruptions, digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion,
increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of Lagos Metropolitan Area Transportation Authority (LAMATA)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Lagos Metropolitan Area Transportation Authority (LAMATA) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Lagos Authority, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Lagos Authority 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 Lagos Metropolitan Area Transportation Authority (LAMATA) can be done for the following purposes –
1. Strategic planning using facts provided in Lagos Metropolitan Area Transportation Authority (LAMATA) case study
2. Improving business portfolio management of Lagos Authority
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 Lagos Authority
Strengths Lagos Metropolitan Area Transportation Authority (LAMATA) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Lagos Authority in Lagos Metropolitan Area Transportation Authority (LAMATA) Harvard Business Review case study are -
Successful track record of launching new products
– Lagos Authority has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Lagos Authority 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
– Lagos Authority 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 Lagos Metropolitan Area Transportation Authority (LAMATA) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Lagos Authority 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 Lagos Authority is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Lagos Metropolitan Area Transportation Authority (LAMATA) 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 Lagos Authority digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Lagos Authority 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.
Operational resilience
– The operational resilience strategy in the Lagos Metropolitan Area Transportation Authority (LAMATA) Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
High switching costs
– The high switching costs that Lagos Authority 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.
Low bargaining power of suppliers
– Suppliers of Lagos Authority in the sector have low bargaining power. Lagos Metropolitan Area Transportation Authority (LAMATA) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Lagos Authority to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Lagos Authority 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 Jose Gomez-Ibanez 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.
Innovation driven organization
– Lagos Authority is one of the most innovative firm in sector. Manager in Lagos Metropolitan Area Transportation Authority (LAMATA) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Lagos Authority is present in almost all the verticals within the industry. This has provided firm in Lagos Metropolitan Area Transportation Authority (LAMATA) 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.
Strong track record of project management
– Lagos Authority is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Lagos Authority has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Lagos Authority to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Lagos Metropolitan Area Transportation Authority (LAMATA) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Lagos Metropolitan Area Transportation Authority (LAMATA) are -
Slow to strategic competitive environment developments
– As Lagos Metropolitan Area Transportation Authority (LAMATA) HBR case study mentions - Lagos Authority 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 Lagos Metropolitan Area Transportation Authority (LAMATA), it seems that the employees of Lagos Authority 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.
Increasing silos among functional specialists
– The organizational structure of Lagos Authority is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Lagos Authority needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Lagos Authority to focus more on services rather than just following the product oriented approach.
Lack of clear differentiation of Lagos Authority products
– To increase the profitability and margins on the products, Lagos Authority needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Lagos Authority has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Aligning sales with marketing
– It come across in the case study Lagos Metropolitan Area Transportation Authority (LAMATA) 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 Lagos Metropolitan Area Transportation Authority (LAMATA) can leverage the sales team experience to cultivate customer relationships as Lagos Authority is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Lagos Metropolitan Area Transportation Authority (LAMATA), in the dynamic environment Lagos Authority has struggled to respond to the nimble upstart competition. Lagos Authority has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High bargaining power of channel partners
– Because of the regulatory requirements, Jose Gomez-Ibanez suggests that, Lagos Authority 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.
High cash cycle compare to competitors
Lagos Authority 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Lagos Metropolitan Area Transportation Authority (LAMATA), is just above the industry average. Lagos Authority 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.
Low market penetration in new markets
– Outside its home market of Lagos Authority, firm in the HBR case study Lagos Metropolitan Area Transportation Authority (LAMATA) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Lagos Metropolitan Area Transportation Authority (LAMATA) | 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 Lagos Metropolitan Area Transportation Authority (LAMATA) are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Lagos Authority 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.
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. Lagos Authority can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Lagos Authority 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.
Creating value in data economy
– The success of analytics program of Lagos Authority has opened avenues for new revenue streams for the organization in the industry. This can help Lagos Authority to build a more holistic ecosystem as suggested in the Lagos Metropolitan Area Transportation Authority (LAMATA) case study. Lagos Authority can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Lagos Authority 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.
Learning at scale
– Online learning technologies has now opened space for Lagos Authority 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.
Buying journey improvements
– Lagos Authority can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Lagos Metropolitan Area Transportation Authority (LAMATA) 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.
Better consumer reach
– The expansion of the 5G network will help Lagos Authority to increase its market reach. Lagos Authority 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.
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. Lagos Authority can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Lagos Authority 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.
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. Lagos Authority 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. Lagos Authority 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.
Leveraging digital technologies
– Lagos Authority 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Lagos Authority 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 Lagos Metropolitan Area Transportation Authority (LAMATA) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Lagos Metropolitan Area Transportation Authority (LAMATA) are -
Regulatory challenges
– Lagos Authority 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.
High dependence on third party suppliers
– Lagos Authority 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. Lagos Authority 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Lagos Authority 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 Lagos Authority 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.
Increasing wage structure of Lagos Authority
– 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 Lagos Authority.
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. Lagos Authority needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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 Lagos Authority 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.
Stagnating economy with rate increase
– Lagos Authority 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.
Consumer confidence and its impact on Lagos Authority 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.
Shortening product life cycle
– it is one of the major threat that Lagos Authority is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, 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 Lagos Authority.
Weighted SWOT Analysis of Lagos Metropolitan Area Transportation Authority (LAMATA) 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 Lagos Metropolitan Area Transportation Authority (LAMATA) 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 Lagos Metropolitan Area Transportation Authority (LAMATA) 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 Lagos Metropolitan Area Transportation Authority (LAMATA) 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 Lagos Metropolitan Area Transportation Authority (LAMATA) 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 Lagos Authority needs to make to build a sustainable competitive advantage.