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 - – increasing energy prices, digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, geopolitical disruptions, increasing transportation and logistics costs, increasing household debt because of falling income levels, wage bills are increasing,
central banks are concerned over increasing inflation, challanges to central banks by blockchain based private 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 -
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.
Ability to recruit top talent
– Trias Ladder is one of the leading recruiters in the industry. Managers in the TRIAS: Decision on Cable Ladder Production are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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.
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.
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.
Learning organization
- Trias Ladder 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 Trias Ladder is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in TRIAS: Decision on Cable Ladder Production Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Trias Ladder is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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.
Training and development
– Trias Ladder has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in TRIAS: Decision on Cable Ladder Production Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Sustainable margins compare to other players in Leadership & Managing People industry
– TRIAS: Decision on Cable Ladder Production firm has clearly differentiated products in the market place. This has enabled Trias Ladder to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Trias Ladder to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Trias Ladder 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.
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.
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 -
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.
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 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.
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.
High operating costs
– Compare to the competitors, firm in the HBR case study TRIAS: Decision on Cable Ladder Production 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 Trias Ladder 's lucrative customers.
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.
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.
Skills based hiring
– The stress on hiring functional specialists at Trias Ladder 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.
Products dominated business model
– Even though Trias Ladder has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - TRIAS: Decision on Cable Ladder Production should strive to include more intangible value offerings along with its core products and services.
Need for greater diversity
– Trias Ladder has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High cash cycle compare to competitors
Trias Ladder 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.
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 -
Developing new processes and practices
– Trias Ladder 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.
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.
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Trias Ladder can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Trias Ladder has opened avenues for new revenue streams for the organization in the industry. This can help Trias Ladder to build a more holistic ecosystem as suggested in the TRIAS: Decision on Cable Ladder Production case study. Trias Ladder 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 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.
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.
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.
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.
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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Trias Ladder 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.
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.
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.
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.
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.
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.
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.
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.
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 .
High dependence on third party suppliers
– Trias Ladder 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.
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.
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.
Stagnating economy with rate increase
– Trias Ladder 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.
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 .
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.
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.