TRIAS: Decision on Cable Ladder Production SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of TRIAS: Decision on Cable Ladder Production
In July 2015, PT Trias Indra Saputra (TRIAS), Indonesia's leading welded cable ladder producer, had just won its largest-ever tender bid. The news could get even better if it adopted alternative materials that were potentially more profitable. The production director was tasked with weighing whether TRIAS should fulfill the tender using its traditional supplier or the new materials. While more expensive, the new materials would cut out several production processes and associated costs. However, using the new suppliers presented significant risks. Only two mills, in Korea and Japan, supplied the appropriate material, and both companies presented different prices and import costs. Since TRIAS could be penalized if it did not supply the goods on time, the production manager also had to calculate the likelihood that each company could be delayed in supplying the order and how much that would reduce profits if it happened. Singfat Chu is affiliated with NUS Business School, Mochtar Riady Building.
Swot Analysis of "TRIAS: Decision on Cable Ladder Production" written by Singfat Chu, Leo Hermanto includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Trias Ladder facing as an external strategic factors. Some of the topics covered in TRIAS: Decision on Cable Ladder Production case study are - Strategic Management Strategies, Decision making, International business, Manufacturing and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the TRIAS: Decision on Cable Ladder Production casestudy better are - – talent flight as more people leaving formal jobs, supply chains are disrupted by pandemic , there is increasing trade war between United States & China, competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, increasing transportation and logistics costs, there is backlash against globalization,
technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of TRIAS: Decision on Cable Ladder Production
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in TRIAS: Decision on Cable Ladder Production case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Trias Ladder, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Trias Ladder 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 TRIAS: Decision on Cable Ladder Production can be done for the following purposes –
1. Strategic planning using facts provided in TRIAS: Decision on Cable Ladder Production case study
2. Improving business portfolio management of Trias Ladder
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 Trias Ladder
Strengths TRIAS: Decision on Cable Ladder Production | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Trias Ladder in TRIAS: Decision on Cable Ladder Production Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Trias Ladder in the sector have low bargaining power. TRIAS: Decision on Cable Ladder Production has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Trias Ladder to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Trias Ladder
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Trias Ladder does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Trias Ladder is present in almost all the verticals within the industry. This has provided firm in TRIAS: Decision on Cable Ladder Production 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.
Superior customer experience
– The customer experience strategy of Trias Ladder in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Highly skilled collaborators
– Trias Ladder 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 TRIAS: Decision on Cable Ladder Production HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Leadership & Managing People field
– Trias Ladder 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 Trias Ladder in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Trias Ladder has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Trias Ladder to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Successful track record of launching new products
– Trias Ladder has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Trias Ladder 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.
Analytics focus
– Trias Ladder 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 Singfat Chu, Leo Hermanto can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Operational resilience
– The operational resilience strategy in the TRIAS: Decision on Cable Ladder Production Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Innovation driven organization
– Trias Ladder is one of the most innovative firm in sector. Manager in TRIAS: Decision on Cable Ladder Production Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Trias Ladder digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Trias Ladder 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.
Weaknesses TRIAS: Decision on Cable Ladder Production | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of TRIAS: Decision on Cable Ladder Production are -
Slow to strategic competitive environment developments
– As TRIAS: Decision on Cable Ladder Production HBR case study mentions - Trias Ladder 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study TRIAS: Decision on Cable Ladder Production, in the dynamic environment Trias Ladder has struggled to respond to the nimble upstart competition. Trias Ladder 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, Singfat Chu, Leo Hermanto suggests that, Trias Ladder 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.
Low market penetration in new markets
– Outside its home market of Trias Ladder, firm in the HBR case study TRIAS: Decision on Cable Ladder Production needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Trias Ladder 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Trias Ladder is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study TRIAS: Decision on Cable Ladder Production can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Capital Spending Reduction
– Even during the low interest decade, Trias Ladder 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the TRIAS: Decision on Cable Ladder Production 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 Trias Ladder has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of Trias Ladder is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Trias Ladder needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Trias Ladder to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Trias Ladder 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. Trias Ladder 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.
Lack of clear differentiation of Trias Ladder products
– To increase the profitability and margins on the products, Trias Ladder needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities TRIAS: Decision on Cable Ladder Production | 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 TRIAS: Decision on Cable Ladder Production are -
Better consumer reach
– The expansion of the 5G network will help Trias Ladder to increase its market reach. Trias Ladder 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
– Trias Ladder 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 TRIAS: Decision on Cable Ladder Production - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Trias Ladder to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Trias Ladder 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 Trias Ladder to hire the very best people irrespective of their geographical location.
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 Trias Ladder in the consumer business. Now Trias Ladder can target international markets with far fewer capital restrictions requirements than the existing system.
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. Trias Ladder 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. Trias Ladder 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Trias Ladder can use these opportunities to build new business models that can help the communities that Trias Ladder operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Building a culture of innovation
– managers at Trias Ladder 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Trias Ladder is facing challenges because of the dominance of functional experts in the organization. TRIAS: Decision on Cable Ladder Production 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.
Manufacturing automation
– Trias Ladder 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.
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 Trias Ladder 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.
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. Trias Ladder can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Trias Ladder 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.
Leveraging digital technologies
– Trias Ladder 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.
Threats TRIAS: Decision on Cable Ladder Production External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study TRIAS: Decision on Cable Ladder Production are -
Environmental challenges
– Trias Ladder needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Trias Ladder can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Increasing wage structure of Trias Ladder
– 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 Trias Ladder.
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 Trias Ladder.
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. Trias Ladder 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.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Trias Ladder in the Leadership & Managing People sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Trias Ladder 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 TRIAS: Decision on Cable Ladder Production .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Trias Ladder with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Trias Ladder 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
– Trias Ladder has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Trias Ladder 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.
Regulatory challenges
– Trias Ladder 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 Trias Ladder business can come under increasing regulations regarding data privacy, data security, 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 TRIAS: Decision on Cable Ladder Production, Trias Ladder 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 TRIAS: Decision on Cable Ladder Production 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 TRIAS: Decision on Cable Ladder Production 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 TRIAS: Decision on Cable Ladder Production 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 TRIAS: Decision on Cable Ladder Production 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 TRIAS: Decision on Cable Ladder Production 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 Trias Ladder needs to make to build a sustainable competitive advantage.
